.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti stated Wednesday that market dryness could possibly escalate in the 2nd fifty percent of the year, but he performs certainly not believe the USA is heading into a recession.Global equities saw stinging auctions last week as entrepreneurs digested weak economic information out of the USA which increased concerns concerning a financial slump in the world's most extensive economic condition. It also raised questions concerning whether the Federal Reserve needed to be a lot less hawkish with its own monetary policy position. The central bank kept prices on hold in overdue July at a 23-year high.When asked about the expectation for the united state economic condition, Ermotti claimed: "Certainly not always an economic crisis, yet undoubtedly a lag is actually feasible."" The macroeconomic clues are unclear sufficient to refer to downturns, and in fact, it's most likely premature. What we understand is actually that the Fed has enough capability to action in and also support that, although it's mosting likely to take time, whatever they do to be at that point transferred in to the economy," the chief executive officer said to CNBC on Wednesday after the bank disclosed its own second-quarter results.UBS expects that the Federal Book will certainly cut rates by at least fifty manner factors this year. At the moment, traders are actually split between a fifty as well as a 25 basis factor cut at the Fed's next appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti said that we are actually probably to view greater market dryness in the 2nd half of the year, somewhat as a result of the U.S. political election in Nov." That is actually one element, yet likewise, if I consider the overall geopolitical picture, if I take a look at the macroeconomic photo, what our experts observed in the final number of weeks in relations to volatility, which, in my point of view, is a very clear indicator of the fragility of some elements of the system, u00e2 $ u00a6 one ought to anticipate certainly a much higher level of volatility," he said.Another anxiety going forward is financial policy and also whether central banks will must cut prices much more strongly to fight a lag in the economic situation. In Switzerland, where UBS is headquartered, the reserve bank has reduced prices twice this year. The European Central Bank and the Bank of England have each revealed one slice so far." Knowing the occasions which are actually theu00c2 unknowns imminent like the U.S. presidential vote-casting, our company came to be contented along with an extremely reduced dryness, currently we are shifting to a much more usual program," Bruno Verstraete, founder of Lakefield Riches Monitoring told CNBC Wednesday." In the circumstance of UBS, [even more volatility is actually] not essentially a negative point, because more dryness indicates additional trading earnings," he included.