.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market dryness could escalate in the second fifty percent of the year, but he carries out not believe the united state is actually heading into a recession.Global equities found stinging sell-offs recently as financiers digested unstable economical data away from the united state which raised worries regarding an economic slump on earth's most extensive economic situation. It additionally raised questions concerning whether the Federal Get required to be a lot less hawkish with its financial plan standpoint. The central bank kept costs on grip in late July at a 23-year high.When inquired about the overview for the united state economic condition, Ermotti stated: "Certainly not automatically a financial crisis, however certainly a lag is actually feasible."" The macroeconomic clues are not clear sufficient to speak about financial crises, and in fact, it is actually possibly early. What we understand is that the Fed possesses sufficient capability to come in and also support that, although it's visiting take a while, whatever they do to be after that transferred in to the economic condition," the CEO said to CNBC on Wednesday after the banking company mentioned its second-quarter results.UBS anticipates that the Federal Get will cut prices by at least fifty basis points this year. Right now, investors are actually divided in between a 50 and also a 25 basis point cut at the Fed's next meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that our company are actually very likely to find higher market volatility in the second one-half of the year, partly due to the U.S. political election in Nov." That is actually one variable, but also, if I examine the general geopolitical picture, if I check out the macroeconomic picture, what our team saw in the last number of weeks in terms of volatility, which, in my viewpoint, is a very clear indication of the delicacy of some elements of the unit, u00e2 $ u00a6 one ought to expect absolutely a higher level of volatility," he said.Another anxiety moving forward is financial plan and also whether central banks are going to must cut fees much more boldy to deal with a slowdown in the economic climate. In Switzerland, where UBS is headquartered, the central bank has cut prices two times this year. The European Central Bank and also the Banking Company of England possess both introduced one slice so far." Recognizing the events which are theu00c2 unknowns at hand like the united state governmental political election, our company became contented with an extremely reduced dryness, right now our experts are shifting to an extra usual regime," Bruno Verstraete, creator of Lakefield Riches Management said to CNBC Wednesday." In the context of UBS, [additional dryness is actually] not necessarily a negative point, considering that more dryness indicates even more investing revenue," he included.