.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti stated Wednesday that market volatility could possibly boost in the second fifty percent of the year, but he does not think the united state is actually moving into a recession.Global equities found sharp sell-offs last week as clients digested weak economic information away from the USA which brought up concerns about an economical decline worldwide's largest economic condition. It additionally raised questions about whether the Federal Reserve required to be a lot less hawkish with its financial policy posture. The central bank maintained fees on hold in late July at a 23-year high.When asked them about the expectation for the USA economic condition, Ermotti said: "Certainly not automatically an economic slump, yet certainly a stagnation is possible."" The macroeconomic red flags are actually unclear enough to refer to economic downturns, as well as actually, it's perhaps untimely. What we know is actually that the Fed possesses good enough capacity to action in as well as help that, although it is actually going to take a while, whatever they do to be at that point transferred right into the economy," the CEO told CNBC on Wednesday after the banking company reported its own second-quarter results.UBS counts on that the Federal Get will certainly cut fees through at least 50 manner points this year. Presently, investors are actually split between a fifty as well as a 25 basis aspect cut at the Fed's following meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti mentioned that we are likely to see greater market volatility in the 2nd one-half of the year, somewhat due to the USA vote-casting in Nov." That's one element, however likewise, if I take a look at the overall geopolitical picture, if I check out the macroeconomic picture, what we found in the final number of weeks in terms of dryness, which, in my perspective, is actually a very clear indicator of the delicacy of some factors of the device, u00e2 $ u00a6 one should count on absolutely a higher degree of dryness," he said.Another unpredictability going ahead is actually monetary policy and whether reserve banks will certainly must reduce fees more boldy to battle a decline in the economy. In Switzerland, where UBS is actually headquartered, the central bank has cut costs two times this year. The International Reserve Bank as well as the Banking Company of England have both announced one cut thus far." Recognizing the occasions which are theu00c2 unknowns imminent like the USA governmental political election, our team became complacent with a quite low dryness, currently our experts are changing to an extra usual regimen," Bruno Verstraete, creator of Lakefield Wide range Monitoring told CNBC Wednesday." In the context of UBS, [even more volatility is] certainly not necessarily a negative thing, given that even more volatility means additional investing profit," he added.