.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market volatility could possibly boost in the second fifty percent of the year, but he performs certainly not think the U.S. is moving right into a recession.Global equities viewed stinging sell-offs last week as real estate investors digested weak financial information out of the U.S. which reared anxieties about an economic slump in the world's largest economy. It additionally questioned about whether the Federal Reserve needed to have to become a lot less hawkish along with its own monetary policy viewpoint. The central bank maintained fees on grip in late July at a 23-year high.When inquired about the overview for the U.S. economic condition, Ermotti claimed: "Certainly not automatically a financial crisis, but most definitely a downturn is actually feasible."" The macroeconomic clues are not clear sufficient to refer to downturns, and also in fact, it is actually probably early. What we understand is that the Fed has enough capability to intervene and help that, although it's heading to take a while, whatever they do to become then transmitted right into the economic climate," the CEO informed CNBC on Wednesday after the banking company reported its own second-quarter results.UBS counts on that the Federal Get will definitely reduce prices by a minimum of fifty basis aspects this year. At the moment, traders are actually divided in between a 50 and also a 25 basis point cut at the Fed's next conference in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our company are most likely to view much higher market volatility in the second one-half of the year, partially as a result of the U.S. election in Nov." That's one aspect, but additionally, if I look at the overall geopolitical photo, if I consider the macroeconomic image, what our company saw in the last number of full weeks in terms of dryness, which, in my point of view, is actually a crystal clear indication of the fragility of some aspects of the system, u00e2 $ u00a6 one need to anticipate certainly a higher level of dryness," he said.Another unpredictability going forward is financial policy and also whether central banks are going to have to reduce costs much more strongly to cope with a decline in the economic condition. In Switzerland, where UBS is headquartered, the reserve bank has reduced fees two times this year. The International Central Bank and the Financial Institution of England possess both announced one slice up until now." Recognizing the activities which are actually theu00c2 unknowns at hand like the united state governmental election, we came to be satisfied along with a quite reduced dryness, right now we are switching to an extra normal program," Bruno Verstraete, owner of Lakefield Wide range Control informed CNBC Wednesday." In the situation of UBS, [additional dryness is actually] certainly not automatically a poor thing, given that additional volatility indicates even more trading revenue," he included.