.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market dryness could possibly heighten in the second one-half of the year, yet he does certainly not strongly believe the USA is heading into a recession.Global equities found sharp sell-offs recently as clients digested weak economic records away from the U.S. which increased anxieties concerning a financial downturn on the planet's largest economic condition. It additionally raised questions about whether the Federal Book needed to become a lot less hawkish with its monetary policy viewpoint. The central bank always kept costs on hold in late July at a 23-year high.When inquired about the outlook for the U.S. economic situation, Ermotti stated: "Certainly not essentially a downturn, however absolutely a slowdown is actually possible."" The macroeconomic red flags are actually not clear adequate to discuss economic downturns, as well as actually, it is actually possibly early. What we know is actually that the Fed possesses sufficient ability to action in as well as help that, although it's heading to take some time, whatever they carry out to become then transmitted right into the economy," the CEO informed CNBC on Wednesday after the banking company mentioned its second-quarter results.UBS anticipates that the Federal Get will reduce prices by a minimum of 50 manner points this year. Currently, traders are split in between a 50 and also a 25 manner factor cut at the Fed's upcoming meeting in September, according to LSEG data.Speaking to CNBC, Ermotti stated that our experts are most likely to find greater market volatility in the 2nd half of the year, partly as a result of the U.S. election in Nov." That's one variable, yet also, if I look at the total geopolitical image, if I consider the macroeconomic photo, what we observed in the final number of full weeks in terms of dryness, which, in my standpoint, is a clear sign of the fragility of some elements of the system, u00e2 $ u00a6 one need to count on most definitely a greater level of dryness," he said.Another unpredictability moving forward is actually financial plan as well as whether reserve banks will definitely must reduce costs much more strongly to combat a decline in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has cut prices twice this year. The European Reserve Bank and also the Bank of England possess each introduced one cut so far." Recognizing the activities which are actually theu00c2 unknowns coming up like the united state governmental vote-casting, our company came to be complacent along with a quite reduced dryness, currently our experts are actually switching to a more ordinary regime," Bruno Verstraete, founder of Lakefield Riches Administration told CNBC Wednesday." In the context of UBS, [even more dryness is] not essentially a negative factor, because additional dryness implies more trading revenue," he included.