.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti stated Wednesday that market volatility can magnify in the second fifty percent of the year, yet he performs not think the U.S. is actually moving into a recession.Global equities saw sharp auctions recently as financiers digested unstable economical information out of the USA which raised worries about an economic decline in the world's most extensive economic condition. It additionally questioned about whether the Federal Book needed to be much less hawkish with its own financial policy posture. The central bank always kept rates on grip in overdue July at a 23-year high.When asked about the outlook for the USA economic climate, Ermotti claimed: "Not always a downturn, however undoubtedly a lag is feasible."" The macroeconomic indications are actually not clear adequate to refer to downturns, as well as really, it is actually most likely untimely. What we understand is actually that the Fed possesses good enough capability to action in and also support that, although it is actually going to take some time, whatever they carry out to become then broadcast into the economic situation," the chief executive officer informed CNBC on Wednesday after the banking company mentioned its own second-quarter results.UBS expects that the Federal Get will cut rates through at least 50 manner aspects this year. Currently, investors are actually divided between a 50 and also a 25 manner aspect cut at the Fed's following appointment in September, according to LSEG data.Speaking to CNBC, Ermotti pointed out that our company are most likely to observe greater market dryness in the 2nd half of the year, partially because of the united state political election in Nov." That's one factor, yet also, if I consider the general geopolitical picture, if I look at the macroeconomic picture, what our experts viewed in the last number of full weeks in regards to volatility, which, in my standpoint, is actually a crystal clear indicator of the delicacy of some elements of the unit, u00e2 $ u00a6 one must count on certainly a higher degree of volatility," he said.Another anxiety moving forward is actually financial policy and also whether central banks will definitely need to reduce costs extra strongly to deal with a downturn in the economic situation. In Switzerland, where UBS is headquartered, the reserve bank has actually reduced fees two times this year. The European Central Bank as well as the Financial Institution of England have both announced one cut until now." Understanding the activities which are theu00c2 unknowns at hand like the USA presidential election, our team came to be unconcerned along with an extremely reduced dryness, currently we are shifting to an extra normal routine," Bruno Verstraete, founder of Lakefield Wealth Monitoring said to CNBC Wednesday." In the context of UBS, [even more volatility is] certainly not essentially a bad thing, since more dryness indicates even more exchanging income," he incorporated.