.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market volatility might escalate in the second half of the year, but he does not strongly believe the U.S. is heading into a recession.Global equities saw sharp auctions recently as entrepreneurs digested unstable economic data out of the U.S. which increased anxieties regarding an economic slump on earth's most extensive economy. It also raised questions regarding whether the Federal Reserve needed to be a lot less hawkish along with its own financial policy standpoint. The reserve bank maintained costs on grip in overdue July at a 23-year high.When asked them about the outlook for the U.S. economic situation, Ermotti mentioned: "Certainly not necessarily a downturn, yet undoubtedly a decline is feasible."" The macroeconomic signs are unclear adequate to refer to downturns, as well as in fact, it is actually most likely premature. What we know is actually that the Fed has good enough capacity to step in and also help that, although it is actually mosting likely to require time, whatever they perform to be then transmitted into the economy," the CEO said to CNBC on Wednesday after the banking company stated its second-quarter results.UBS anticipates that the Federal Reserve will definitely reduce costs by at the very least fifty manner aspects this year. Right now, traders are split between a fifty and a 25 manner aspect cut at the Fed's upcoming conference in September, according to LSEG data.Speaking to CNBC, Ermotti stated that our team are actually likely to observe higher market volatility in the second fifty percent of the year, partially because of the USA election in Nov." That is actually one variable, but also, if I check out the general geopolitical photo, if I check out the macroeconomic photo, what we found in the last number of full weeks in regards to dryness, which, in my standpoint, is a very clear sign of the frailty of some elements of the device, u00e2 $ u00a6 one ought to anticipate absolutely a greater level of dryness," he said.Another uncertainty moving forward is monetary plan and also whether central banks will certainly have to cut costs much more strongly to deal with a stagnation in the economy. In Switzerland, where UBS is actually headquartered, the reserve bank has actually reduced prices two times this year. The International Central Bank as well as the Bank of England have each introduced one slice thus far." Recognizing the occasions which are actually theu00c2 unknowns on the horizon like the U.S. governmental vote-casting, our company came to be complacent with a really reduced volatility, right now our experts are switching to an even more typical program," Bruno Verstraete, founder of Lakefield Wide range Management told CNBC Wednesday." In the circumstance of UBS, [even more volatility is actually] certainly not essentially a poor point, since additional dryness indicates more trading earnings," he incorporated.