.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti stated Wednesday that market volatility can increase in the second one-half of the year, yet he does not think the USA is heading right into a recession.Global equities found sharp auctions recently as clients digested unstable economic data out of the united state which brought up worries concerning an economical decline on the planet's biggest economic condition. It additionally raised questions regarding whether the Federal Reserve needed to be less hawkish along with its financial plan stance. The reserve bank always kept costs on grip in late July at a 23-year high.When inquired about the overview for the USA economic situation, Ermotti pointed out: "Certainly not essentially a financial crisis, however undoubtedly a stagnation is actually achievable."" The macroeconomic indicators are actually not clear adequate to talk about economic downturns, and also really, it is actually most likely premature. What we understand is actually that the Fed has good enough ability to intervene as well as assistance that, although it is actually mosting likely to take a while, whatever they perform to be then sent into the economy," the CEO informed CNBC on Wednesday after the bank stated its own second-quarter results.UBS expects that the Federal Reserve are going to cut fees by at least fifty basis factors this year. Presently, investors are split between a fifty as well as a 25 manner factor cut at the Fed's upcoming meeting in September, according to LSEG data.Speaking to CNBC, Ermotti pointed out that our company are actually probably to see much higher market volatility in the 2nd half of the year, somewhat due to the USA election in Nov." That is actually one factor, yet additionally, if I examine the general geopolitical image, if I look at the macroeconomic picture, what our experts viewed in the last number of weeks in regards to volatility, which, in my viewpoint, is a clear indication of the fragility of some components of the unit, u00e2 $ u00a6 one need to count on definitely a greater degree of dryness," he said.Another anxiety going ahead is monetary policy and also whether central banks will definitely need to reduce prices more strongly to fight a lag in the economic condition. In Switzerland, where UBS is actually headquartered, the reserve bank has actually cut fees twice this year. The International Central Bank as well as the Bank of England possess both introduced one slice up until now." Recognizing the events which are theu00c2 unknowns imminent like the united state governmental political election, our team became contented along with a quite low dryness, now our experts are changing to an extra ordinary regime," Bruno Verstraete, founder of Lakefield Wide range Control told CNBC Wednesday." In the situation of UBS, [even more dryness is actually] certainly not always a negative factor, given that even more dryness means additional trading profit," he incorporated.