.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market dryness might heighten in the 2nd half of the year, yet he carries out not think the U.S. is actually moving right into a recession.Global equities found sharp auctions recently as real estate investors digested weak financial data out of the united state which reared concerns regarding an economic recession worldwide's biggest economic climate. It likewise raised questions about whether the Federal Get required to be much less hawkish along with its own financial plan standpoint. The reserve bank kept costs on hold in late July at a 23-year high.When asked them about the outlook for the united state economic climate, Ermotti said: "Certainly not necessarily an economic slump, however certainly a decline is feasible."" The macroeconomic signs are not clear sufficient to refer to financial crises, and also in fact, it is actually probably premature. What we know is that the Fed possesses enough capability to intervene and support that, although it's heading to take some time, whatever they carry out to become at that point transferred in to the economic condition," the chief executive officer informed CNBC on Wednesday after the banking company mentioned its own second-quarter results.UBS counts on that the Federal Reserve are going to reduce costs through at least fifty basis aspects this year. Presently, traders are split in between a fifty and a 25 manner aspect cut at the Fed's next appointment in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that we are most likely to view greater market dryness in the 2nd one-half of the year, partially because of the USA election in November." That's one factor, however also, if I examine the overall geopolitical picture, if I look at the macroeconomic image, what we observed in the final number of weeks in terms of dryness, which, in my perspective, is a very clear sign of the fragility of some aspects of the system, u00e2 $ u00a6 one need to expect certainly a much higher degree of dryness," he said.Another unpredictability going ahead is actually financial policy and whether reserve banks are going to need to reduce fees even more strongly to combat a decline in the economic situation. In Switzerland, where UBS is headquartered, the central bank has cut costs twice this year. The International Central Bank and also the Bank of England have each revealed one slice up until now." Recognizing the celebrations which are actually theu00c2 unknowns at hand like the U.S. presidential political election, our experts came to be complacent along with a very reduced dryness, now our team are switching to an even more regular regimen," Bruno Verstraete, founder of Lakefield Riches Monitoring told CNBC Wednesday." In the situation of UBS, [even more volatility is actually] certainly not automatically a bad factor, due to the fact that even more dryness means additional investing income," he incorporated.