.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market volatility could heighten in the second one-half of the year, but he performs not think the united state is moving right into a recession.Global equities viewed sharp sell-offs last week as entrepreneurs digested unstable economical data out of the U.S. which increased worries concerning an economical decline on the planet's most extensive economic condition. It also questioned concerning whether the Federal Get required to be a lot less hawkish with its own financial policy stance. The central bank maintained rates on hold in overdue July at a 23-year high.When inquired about the overview for the united state economic condition, Ermotti stated: "Not essentially a downturn, yet certainly a decline is actually achievable."" The macroeconomic signs are actually unclear sufficient to speak about downturns, as well as actually, it's most likely premature. What we understand is actually that the Fed possesses good enough ability to come in and also support that, although it is actually heading to take some time, whatever they perform to become after that transferred right into the economic situation," the chief executive officer informed CNBC on Wednesday after the banking company mentioned its own second-quarter results.UBS anticipates that the Federal Reserve will definitely cut prices through at least 50 basis aspects this year. Presently, investors are actually divided between a fifty and also a 25 manner point cut at the Fed's following appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti mentioned that our experts are probably to find higher market volatility in the second fifty percent of the year, partially due to the USA vote-casting in November." That is actually one factor, but additionally, if I consider the total geopolitical photo, if I look at the macroeconomic photo, what our experts viewed in the final number of weeks in relations to dryness, which, in my viewpoint, is actually a very clear indication of the fragility of some components of the unit, u00e2 $ u00a6 one ought to anticipate most definitely a much higher level of volatility," he said.Another uncertainty going forward is actually monetary plan and also whether central banks will have to reduce fees more aggressively to combat a stagnation in the economy. In Switzerland, where UBS is actually headquartered, the reserve bank has actually cut prices two times this year. The European Central Bank and the Financial Institution of England have both introduced one cut thus far." Recognizing the activities which are actually theu00c2 unknowns at hand like the U.S. presidential election, our company became complacent with an incredibly low dryness, right now our company are switching to a more regular routine," Bruno Verstraete, creator of Lakefield Wide range Monitoring told CNBC Wednesday." In the situation of UBS, [even more dryness is] certainly not automatically a bad factor, due to the fact that even more volatility implies more trading earnings," he included.