.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market volatility can boost in the 2nd one-half of the year, however he does certainly not strongly believe the U.S. is actually heading into a recession.Global equities observed sharp sell-offs recently as entrepreneurs digested weak economical information out of the USA which brought up fears regarding an economic recession in the world's largest economy. It likewise questioned regarding whether the Federal Reserve required to be much less hawkish along with its financial policy posture. The central bank always kept prices on grip in overdue July at a 23-year high.When asked about the expectation for the U.S. economic climate, Ermotti claimed: "Not necessarily an economic slump, however certainly a stagnation is actually achievable."" The macroeconomic signs are not clear adequate to talk about economic crises, and actually, it's perhaps premature. What we understand is that the Fed possesses good enough capability to action in as well as assistance that, although it is actually mosting likely to take time, whatever they do to become then sent into the economy," the chief executive officer said to CNBC on Wednesday after the financial institution mentioned its own second-quarter results.UBS counts on that the Federal Reserve are going to reduce costs by at the very least 50 basis factors this year. Right now, investors are actually split between a 50 and also a 25 manner factor cut at the Fed's upcoming appointment in September, according to LSEG data.Speaking to CNBC, Ermotti said that we are most likely to view higher market dryness in the second half of the year, partially because of the united state vote-casting in November." That is actually one element, but additionally, if I check out the overall geopolitical image, if I take a look at the macroeconomic picture, what our experts viewed in the last number of full weeks in relations to dryness, which, in my perspective, is a clear sign of the delicacy of some aspects of the body, u00e2 $ u00a6 one ought to count on absolutely a much higher level of volatility," he said.Another uncertainty going forward is actually monetary policy and whether central banks will need to cut prices more strongly to deal with a downturn in the economic condition. In Switzerland, where UBS is actually headquartered, the central bank has cut costs twice this year. The International Central Bank as well as the Bank of England possess each introduced one slice until now." Knowing the celebrations which are actually theu00c2 unknowns at hand like the U.S. presidential vote-casting, our company became contented with an incredibly low dryness, right now we are actually changing to a more regular regimen," Bruno Verstraete, creator of Lakefield Riches Management informed CNBC Wednesday." In the circumstance of UBS, [even more volatility is actually] not necessarily a bad thing, because additional dryness indicates even more exchanging income," he incorporated.