.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market volatility could magnify in the second fifty percent of the year, yet he performs not believe the united state is actually heading right into a recession.Global equities observed sharp sell-offs last week as financiers digested unstable financial information away from the united state which raised anxieties regarding an economic recession on the planet's largest economic climate. It additionally raised questions concerning whether the Federal Book needed to become a lot less hawkish with its financial plan standpoint. The central bank kept rates on grip in overdue July at a 23-year high.When asked them about the outlook for the united state economic climate, Ermotti mentioned: "Certainly not automatically an economic slump, but undoubtedly a downturn is actually feasible."" The macroeconomic clues are actually unclear enough to speak about financial crises, as well as in fact, it is actually most likely premature. What we understand is actually that the Fed possesses sufficient ability to step in as well as assistance that, although it's going to take some time, whatever they carry out to be after that transmitted into the economic condition," the CEO informed CNBC on Wednesday after the financial institution stated its second-quarter results.UBS counts on that the Federal Book are going to reduce fees by at least 50 manner factors this year. Right now, traders are actually divided between a fifty and also a 25 manner point cut at the Fed's following meeting in September, according to LSEG data.Speaking to CNBC, Ermotti pointed out that our experts are actually likely to view greater market volatility in the second half of the year, somewhat due to the U.S. vote-casting in Nov." That's one aspect, but additionally, if I examine the overall geopolitical picture, if I consider the macroeconomic image, what we observed in the last number of full weeks in regards to volatility, which, in my standpoint, is actually a crystal clear indication of the frailty of some factors of the device, u00e2 $ u00a6 one should count on most definitely a greater degree of volatility," he said.Another anxiety moving forward is financial policy as well as whether reserve banks will certainly have to reduce costs a lot more boldy to deal with a stagnation in the economy. In Switzerland, where UBS is actually headquartered, the central bank has cut prices twice this year. The International Reserve Bank and also the Banking Company of England possess each introduced one slice until now." Knowing the activities which are theu00c2 unknowns at hand like the U.S. presidential election, our team came to be contented along with a really reduced dryness, currently we are shifting to an extra regular regime," Bruno Verstraete, owner of Lakefield Riches Administration said to CNBC Wednesday." In the circumstance of UBS, [additional volatility is actually] not essentially a poor thing, since even more dryness means even more exchanging revenue," he added.