.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market dryness could magnify in the second half of the year, but he performs certainly not feel the USA is actually moving into a recession.Global equities found stinging auctions last week as clients digested unstable economical records away from the united state which increased fears about a financial slump around the world's most extensive economic situation. It also raised questions about whether the Federal Get needed to become less hawkish along with its own monetary policy position. The reserve bank kept rates on hold in overdue July at a 23-year high.When inquired about the outlook for the USA economic situation, Ermotti stated: "Certainly not essentially a financial crisis, however certainly a slowdown is actually feasible."" The macroeconomic clues are actually unclear adequate to speak about economic crises, and also in fact, it's perhaps early. What we understand is actually that the Fed has sufficient capacity to action in and help that, although it is actually mosting likely to require time, whatever they perform to be at that point transferred into the economic condition," the chief executive officer informed CNBC on Wednesday after the bank disclosed its own second-quarter results.UBS anticipates that the Federal Book will cut costs by at least 50 manner points this year. Presently, investors are actually split between a 50 and a 25 manner aspect cut at the Fed's next appointment in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that we are probably to find higher market dryness in the second fifty percent of the year, partly because of the united state vote-casting in November." That's one aspect, but likewise, if I look at the overall geopolitical picture, if I take a look at the macroeconomic photo, what our company found in the final couple of full weeks in regards to volatility, which, in my standpoint, is actually a crystal clear sign of the frailty of some components of the body, u00e2 $ u00a6 one need to expect undoubtedly a higher degree of volatility," he said.Another uncertainty moving forward is actually monetary plan and also whether central banks will have to reduce rates extra aggressively to deal with a stagnation in the economic situation. In Switzerland, where UBS is actually headquartered, the central bank has actually reduced costs twice this year. The European Central Bank as well as the Banking Company of England have each announced one cut until now." Recognizing the activities which are actually theu00c2 unknowns at hand like the U.S. governmental political election, our experts ended up being complacent with an extremely reduced dryness, now our company are actually switching to an even more normal program," Bruno Verstraete, owner of Lakefield Wealth Management informed CNBC Wednesday." In the situation of UBS, [even more volatility is] not necessarily a poor trait, due to the fact that more dryness means more trading profit," he added.