.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market dryness could heighten in the second half of the year, yet he performs certainly not believe the united state is actually heading right into a recession.Global equities saw sharp auctions last week as financiers digested unstable economical records out of the united state which raised concerns concerning an economic decline on earth's most extensive economic climate. It likewise raised questions about whether the Federal Book needed to have to be a lot less hawkish with its monetary policy posture. The reserve bank always kept rates on hold in overdue July at a 23-year high.When asked about the expectation for the USA economic situation, Ermotti stated: "Certainly not essentially an economic crisis, however undoubtedly a stagnation is feasible."" The macroeconomic indications are actually not clear adequate to refer to economic crises, and really, it's probably premature. What we know is that the Fed has sufficient capacity to action in and support that, although it's heading to take time, whatever they carry out to become after that transmitted into the economy," the chief executive officer told CNBC on Wednesday after the bank reported its own second-quarter results.UBS anticipates that the Federal Book will certainly cut costs through a minimum of 50 basis factors this year. Right now, traders are divided between a 50 and also a 25 manner factor cut at the Fed's next appointment in September, according to LSEG data.Speaking to CNBC, Ermotti said that our experts are likely to view much higher market dryness in the 2nd half of the year, partly as a result of the U.S. vote-casting in November." That is actually one variable, but likewise, if I check out the total geopolitical photo, if I take a look at the macroeconomic image, what we found in the last number of full weeks in regards to volatility, which, in my perspective, is actually a very clear indicator of the fragility of some components of the unit, u00e2 $ u00a6 one must count on certainly a higher degree of volatility," he said.Another anxiety moving forward is actually financial plan and whether reserve banks will certainly must cut costs a lot more strongly to fight a lag in the economic condition. In Switzerland, where UBS is actually headquartered, the central bank has actually reduced fees two times this year. The International Reserve Bank as well as the Banking Company of England possess each revealed one cut until now." Knowing the celebrations which are actually theu00c2 unknowns at hand like the united state governmental political election, our experts ended up being complacent along with a really low volatility, now our team are actually changing to an extra usual regimen," Bruno Verstraete, founder of Lakefield Wealth Administration said to CNBC Wednesday." In the circumstance of UBS, [additional dryness is] certainly not essentially a poor point, since even more volatility implies more trading revenue," he included.