.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market volatility could boost in the 2nd fifty percent of the year, but he carries out not think the U.S. is heading into a recession.Global equities saw sharp sell-offs last week as capitalists digested weak financial information out of the USA which increased anxieties regarding an economical slump on earth's largest economic condition. It also raised questions concerning whether the Federal Get required to become less hawkish with its own financial plan viewpoint. The reserve bank always kept prices on hold in overdue July at a 23-year high.When asked about the expectation for the USA economic climate, Ermotti pointed out: "Certainly not essentially a financial crisis, yet definitely a decline is actually possible."" The macroeconomic red flags are unclear adequate to speak about economic crises, and also in fact, it is actually possibly untimely. What we understand is that the Fed possesses sufficient capacity to come in as well as support that, although it is actually heading to take time, whatever they carry out to be then broadcast right into the economic situation," the chief executive officer told CNBC on Wednesday after the bank disclosed its second-quarter results.UBS anticipates that the Federal Book will reduce costs through at the very least 50 manner points this year. Presently, traders are divided in between a fifty and a 25 manner factor cut at the Fed's following conference in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that our company are actually most likely to view much higher market volatility in the 2nd half of the year, somewhat as a result of the U.S. political election in Nov." That's one element, yet likewise, if I look at the general geopolitical image, if I consider the macroeconomic image, what our team found in the last couple of weeks in regards to volatility, which, in my perspective, is a crystal clear sign of the delicacy of some factors of the device, u00e2 $ u00a6 one should expect most definitely a much higher level of dryness," he said.Another anxiety moving forward is actually financial plan as well as whether central banks are going to must cut fees even more strongly to cope with a decline in the economic climate. In Switzerland, where UBS is headquartered, the central bank has reduced fees two times this year. The European Central Bank and the Financial Institution of England possess both revealed one slice so far." Knowing the celebrations which are theu00c2 unknowns coming up like the USA governmental vote-casting, our company ended up being unconcerned with a quite low dryness, right now we are actually switching to an extra ordinary regime," Bruno Verstraete, creator of Lakefield Wide range Control informed CNBC Wednesday." In the context of UBS, [even more dryness is] not essentially a bad factor, considering that more dryness suggests additional exchanging earnings," he incorporated.