.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market volatility could boost in the 2nd fifty percent of the year, but he carries out not think the USA is actually heading into a recession.Global equities viewed stinging auctions last week as capitalists digested unstable economical data out of the USA which reared worries about an economic decline in the world's most extensive economic climate. It additionally raised questions concerning whether the Federal Book needed to become less hawkish with its financial plan stance. The reserve bank kept costs on grip in late July at a 23-year high.When asked about the outlook for the U.S. economic situation, Ermotti mentioned: "Certainly not always a financial crisis, but undoubtedly a decline is feasible."" The macroeconomic clues are actually not clear enough to refer to downturns, and also really, it is actually perhaps untimely. What we know is that the Fed possesses sufficient ability to come in as well as support that, although it's visiting take some time, whatever they carry out to become after that broadcast right into the economy," the chief executive officer informed CNBC on Wednesday after the financial institution disclosed its second-quarter results.UBS expects that the Federal Book will definitely reduce rates by at the very least fifty basis points this year. Presently, investors are split between a fifty as well as a 25 basis point cut at the Fed's following appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti said that our company are most likely to observe much higher market volatility in the 2nd one-half of the year, somewhat due to the united state vote-casting in Nov." That is actually one factor, however also, if I look at the overall geopolitical image, if I examine the macroeconomic photo, what our team found in the last number of weeks in relations to volatility, which, in my point of view, is a clear indicator of the fragility of some aspects of the system, u00e2 $ u00a6 one ought to expect most definitely a higher degree of volatility," he said.Another anxiety going forward is actually financial policy and also whether central banks will certainly must cut prices even more boldy to combat a lag in the economy. In Switzerland, where UBS is headquartered, the reserve bank has actually cut prices two times this year. The International Reserve Bank and also the Financial Institution of England possess each introduced one slice so far." Recognizing the events which are theu00c2 unknowns coming up like the USA presidential election, our team came to be obsequious with an extremely low dryness, right now we are switching to a more usual program," Bruno Verstraete, owner of Lakefield Wide range Control said to CNBC Wednesday." In the context of UBS, [even more dryness is actually] certainly not necessarily a poor factor, considering that more dryness implies more investing profit," he included.