.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti stated Wednesday that market volatility could heighten in the second fifty percent of the year, but he does not believe the USA is heading right into a recession.Global equities viewed sharp auctions last week as entrepreneurs digested unstable economical records out of the USA which brought up concerns concerning an economic recession around the world's biggest economic climate. It additionally questioned concerning whether the Federal Get required to be less hawkish with its monetary policy position. The central bank kept costs on grip in overdue July at a 23-year high.When asked about the overview for the united state economic condition, Ermotti stated: "Certainly not necessarily an economic slump, yet undoubtedly a slowdown is actually achievable."" The macroeconomic indications are not clear enough to talk about economic crises, as well as actually, it's most likely premature. What we understand is that the Fed possesses sufficient capability to step in and also assistance that, although it's going to take a while, whatever they carry out to become then transmitted in to the economic climate," the chief executive officer told CNBC on Wednesday after the banking company mentioned its own second-quarter results.UBS expects that the Federal Book will certainly reduce costs through at least fifty basis factors this year. Presently, investors are actually divided in between a 50 and a 25 basis aspect cut at the Fed's next meeting in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that we are probably to observe greater market volatility in the second half of the year, partially because of the U.S. vote-casting in Nov." That is actually one aspect, yet additionally, if I take a look at the overall geopolitical photo, if I look at the macroeconomic image, what our experts viewed in the last number of full weeks in terms of volatility, which, in my perspective, is actually a clear indication of the delicacy of some factors of the body, u00e2 $ u00a6 one should expect absolutely a higher level of volatility," he said.Another unpredictability moving forward is monetary policy and whether central banks will must reduce costs a lot more aggressively to combat a slowdown in the economic condition. In Switzerland, where UBS is headquartered, the central bank has actually reduced prices twice this year. The International Reserve Bank and the Banking Company of England possess each introduced one cut thus far." Understanding the occasions which are actually theu00c2 unknowns on the horizon like the USA governmental political election, our team ended up being satisfied along with a quite reduced dryness, right now our experts are actually shifting to an even more usual regime," Bruno Verstraete, founder of Lakefield Wide range Administration said to CNBC Wednesday." In the context of UBS, [even more dryness is] not necessarily a bad thing, given that more dryness means additional exchanging profit," he added.