.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market volatility can boost in the 2nd fifty percent of the year, yet he performs certainly not believe the U.S. is actually heading into a recession.Global equities viewed sharp sell-offs last week as entrepreneurs digested weak financial data away from the U.S. which increased fears about an economical decline around the world's biggest economic condition. It likewise raised questions about whether the Federal Book required to become less hawkish with its financial policy standpoint. The reserve bank maintained fees on grip in overdue July at a 23-year high.When asked them about the outlook for the USA economic condition, Ermotti pointed out: "Certainly not necessarily an economic crisis, yet definitely a downturn is actually achievable."" The macroeconomic indications are actually not clear adequate to talk about downturns, as well as in fact, it is actually most likely untimely. What we understand is actually that the Fed possesses sufficient ability to action in and also support that, although it's heading to take a while, whatever they perform to be at that point transmitted right into the economic situation," the chief executive officer told CNBC on Wednesday after the bank mentioned its second-quarter results.UBS expects that the Federal Get will certainly cut fees by a minimum of fifty manner factors this year. Currently, investors are actually divided in between a 50 as well as a 25 basis point cut at the Fed's upcoming conference in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that we are actually very likely to observe higher market dryness in the 2nd fifty percent of the year, partially because of the united state political election in November." That is actually one element, however also, if I take a look at the total geopolitical picture, if I examine the macroeconomic image, what our team found in the last number of weeks in terms of volatility, which, in my standpoint, is a very clear indication of the fragility of some factors of the body, u00e2 $ u00a6 one ought to anticipate certainly a higher level of volatility," he said.Another uncertainty moving forward is actually monetary policy and whether reserve banks will definitely must cut prices more aggressively to cope with a lag in the economic condition. In Switzerland, where UBS is headquartered, the central bank has cut fees two times this year. The European Reserve Bank and also the Banking Company of England possess each declared one cut thus far." Understanding the events which are actually theu00c2 unknowns coming up like the USA governmental vote-casting, we ended up being complacent with a quite reduced dryness, now our company are actually moving to a more ordinary regimen," Bruno Verstraete, creator of Lakefield Wealth Management said to CNBC Wednesday." In the situation of UBS, [additional volatility is] not essentially a poor thing, since even more dryness implies more exchanging profit," he added.