.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market volatility could magnify in the 2nd half of the year, however he does certainly not strongly believe the united state is heading in to a recession.Global equities viewed stinging sell-offs last week as capitalists digested weak economic information away from the U.S. which reared fears concerning an economical downturn worldwide's biggest economy. It likewise questioned about whether the Federal Book needed to have to be a lot less hawkish with its monetary policy stance. The reserve bank kept prices on grip in late July at a 23-year high.When inquired about the expectation for the USA economic situation, Ermotti said: "Not always a recession, yet definitely a downturn is actually feasible."" The macroeconomic indicators are actually not clear enough to discuss economic downturns, as well as in fact, it is actually probably premature. What we understand is actually that the Fed possesses good enough capacity to come in as well as assistance that, although it's mosting likely to take time, whatever they perform to be then transmitted into the economic climate," the chief executive officer said to CNBC on Wednesday after the banking company reported its second-quarter results.UBS anticipates that the Federal Get will certainly reduce fees by at the very least fifty basis aspects this year. Currently, investors are split between a fifty as well as a 25 manner factor cut at the Fed's following conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that we are actually probably to find much higher market dryness in the second half of the year, partially as a result of the united state vote-casting in Nov." That's one factor, but additionally, if I check out the total geopolitical image, if I look at the macroeconomic image, what our team viewed in the final number of full weeks in terms of volatility, which, in my point of view, is a clear sign of the fragility of some elements of the system, u00e2 $ u00a6 one must expect most definitely a much higher level of volatility," he said.Another uncertainty moving forward is actually financial policy and whether central banks will have to reduce prices even more aggressively to combat a decline in the economic condition. In Switzerland, where UBS is actually headquartered, the reserve bank has actually cut costs two times this year. The European Central Bank as well as the Bank of England possess each revealed one cut up until now." Understanding the celebrations which are actually theu00c2 unknowns imminent like the united state governmental vote-casting, our company became satisfied along with a quite low dryness, now our experts are actually switching to a much more normal routine," Bruno Verstraete, owner of Lakefield Wealth Management told CNBC Wednesday." In the context of UBS, [more volatility is actually] not necessarily a poor factor, because even more dryness implies even more trading profit," he incorporated.