.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti stated Wednesday that market dryness might magnify in the second one-half of the year, yet he does certainly not feel the united state is actually heading right into a recession.Global equities saw sharp sell-offs last week as capitalists digested unstable economic records away from the U.S. which reared worries concerning an economic decline on earth's largest economic condition. It additionally raised questions regarding whether the Federal Reserve required to become a lot less hawkish along with its own financial policy stance. The reserve bank maintained fees on grip in late July at a 23-year high.When asked them about the overview for the U.S. economy, Ermotti said: "Certainly not necessarily a downturn, yet definitely a stagnation is actually possible."" The macroeconomic indicators are actually not clear sufficient to discuss downturns, and also really, it is actually probably early. What we understand is actually that the Fed has sufficient capability to action in and assistance that, although it is actually heading to take a while, whatever they do to become after that transferred right into the economy," the CEO told CNBC on Wednesday after the bank reported its own second-quarter results.UBS expects that the Federal Book will certainly cut costs through a minimum of 50 basis aspects this year. At the moment, investors are split between a 50 and a 25 basis factor cut at the Fed's following conference in September, according to LSEG data.Speaking to CNBC, Ermotti said that we are probably to find higher market volatility in the second half of the year, partly as a result of the united state election in November." That is actually one aspect, but likewise, if I consider the overall geopolitical picture, if I consider the macroeconomic image, what our company found in the final number of weeks in relations to dryness, which, in my perspective, is a crystal clear indicator of the fragility of some factors of the device, u00e2 $ u00a6 one should anticipate definitely a much higher level of dryness," he said.Another uncertainty going forward is actually financial policy and whether central banks are going to must reduce rates extra aggressively to cope with a decline in the economic situation. In Switzerland, where UBS is actually headquartered, the central bank has actually reduced rates two times this year. The European Central Bank and also the Financial Institution of England possess both declared one slice up until now." Knowing the celebrations which are actually theu00c2 unknowns imminent like the united state governmental political election, our team came to be obsequious along with a really low volatility, now our company are actually switching to a more regular routine," Bruno Verstraete, owner of Lakefield Wide range Management told CNBC Wednesday." In the circumstance of UBS, [additional dryness is] not automatically a negative trait, because additional volatility means more trading earnings," he incorporated.