.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market dryness can intensify in the second fifty percent of the year, however he performs not strongly believe the USA is heading into a recession.Global equities saw sharp auctions recently as entrepreneurs digested unstable economical data away from the united state which brought up fears about an economical decline on earth's biggest economic situation. It additionally questioned concerning whether the Federal Get needed to become much less hawkish with its financial plan posture. The reserve bank kept rates on hold in overdue July at a 23-year high.When inquired about the expectation for the U.S. economic condition, Ermotti stated: "Certainly not necessarily an economic crisis, yet absolutely a stagnation is actually possible."" The macroeconomic signs are unclear adequate to talk about economic crises, and actually, it is actually perhaps untimely. What we know is that the Fed possesses enough capacity to intervene and help that, although it is actually heading to take time, whatever they carry out to become after that transferred right into the economic situation," the CEO told CNBC on Wednesday after the banking company mentioned its own second-quarter results.UBS anticipates that the Federal Reserve will certainly cut fees through a minimum of fifty basis factors this year. Right now, traders are divided in between a fifty and also a 25 basis point cut at the Fed's following meeting in September, according to LSEG data.Speaking to CNBC, Ermotti pointed out that we are actually likely to view greater market volatility in the 2nd half of the year, somewhat as a result of the U.S. political election in November." That's one aspect, yet also, if I take a look at the general geopolitical picture, if I take a look at the macroeconomic image, what our team observed in the final couple of full weeks in terms of dryness, which, in my viewpoint, is a very clear sign of the delicacy of some factors of the unit, u00e2 $ u00a6 one should expect absolutely a higher degree of dryness," he said.Another anxiety going forward is financial policy and also whether central banks will must reduce prices a lot more aggressively to combat a lag in the economy. In Switzerland, where UBS is headquartered, the reserve bank has actually cut prices twice this year. The European Central Bank and the Bank of England have each revealed one slice up until now." Recognizing the activities which are theu00c2 unknowns at hand like the USA presidential political election, our company became satisfied with a very reduced dryness, now our team are changing to an even more typical program," Bruno Verstraete, creator of Lakefield Wide range Administration informed CNBC Wednesday." In the circumstance of UBS, [even more volatility is actually] not necessarily a poor trait, because even more dryness suggests more investing earnings," he incorporated.