.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market dryness might increase in the 2nd half of the year, but he performs certainly not think the USA is actually moving into a recession.Global equities saw stinging auctions last week as real estate investors digested weak financial data out of the united state which reared anxieties concerning an economical downturn worldwide's biggest economic climate. It also raised questions concerning whether the Federal Get required to become much less hawkish along with its monetary policy position. The central bank kept fees on grip in late July at a 23-year high.When inquired about the outlook for the U.S. economic climate, Ermotti pointed out: "Certainly not necessarily an economic downturn, however absolutely a decline is possible."" The macroeconomic indicators are unclear enough to talk about economic downturns, and actually, it's perhaps early. What we understand is actually that the Fed possesses good enough ability to action in as well as help that, although it is actually mosting likely to take some time, whatever they do to become after that broadcast in to the economic climate," the CEO said to CNBC on Wednesday after the banking company stated its second-quarter results.UBS counts on that the Federal Get will definitely cut prices through at least 50 manner points this year. At the moment, traders are divided in between a fifty and a 25 manner aspect cut at the Fed's upcoming meeting in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that our company are actually most likely to find higher market volatility in the 2nd one-half of the year, somewhat as a result of the U.S. vote-casting in Nov." That's one factor, however likewise, if I take a look at the overall geopolitical picture, if I examine the macroeconomic photo, what our team saw in the final number of weeks in regards to dryness, which, in my perspective, is a clear sign of the fragility of some components of the body, u00e2 $ u00a6 one need to anticipate undoubtedly a much higher level of dryness," he said.Another uncertainty going forward is actually financial plan and also whether reserve banks are going to must cut fees even more aggressively to cope with a decline in the economic condition. In Switzerland, where UBS is actually headquartered, the reserve bank has actually reduced costs two times this year. The European Reserve Bank and the Bank of England have each revealed one slice so far." Knowing the events which are actually theu00c2 unknowns on the horizon like the U.S. presidential vote-casting, our experts became obsequious along with a really reduced volatility, right now our experts are moving to an extra typical routine," Bruno Verstraete, creator of Lakefield Wide range Control told CNBC Wednesday." In the context of UBS, [even more volatility is] not necessarily a bad factor, considering that more dryness means even more investing earnings," he included.