.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market dryness could heighten in the second fifty percent of the year, however he carries out certainly not believe the united state is actually moving right into a recession.Global equities viewed sharp auctions last week as financiers digested unstable economical data away from the U.S. which reared worries concerning a financial recession in the world's biggest economic climate. It additionally questioned regarding whether the Federal Book needed to be much less hawkish along with its monetary plan stance. The central bank kept costs on hold in overdue July at a 23-year high.When asked them about the outlook for the U.S. economy, Ermotti pointed out: "Certainly not necessarily a financial crisis, yet certainly a stagnation is achievable."" The macroeconomic signs are actually not clear adequate to speak about economic slumps, as well as really, it's most likely early. What we know is that the Fed has enough capability to intervene as well as assistance that, although it's mosting likely to take time, whatever they perform to be then sent in to the economy," the chief executive officer told CNBC on Wednesday after the banking company disclosed its own second-quarter results.UBS anticipates that the Federal Get will definitely cut costs by a minimum of fifty manner factors this year. Right now, traders are actually divided between a fifty and also a 25 manner factor cut at the Fed's upcoming conference in September, according to LSEG data.Speaking to CNBC, Ermotti pointed out that our experts are actually most likely to observe much higher market volatility in the 2nd one-half of the year, partially because of the U.S. political election in November." That's one aspect, however additionally, if I check out the general geopolitical picture, if I take a look at the macroeconomic photo, what our experts saw in the final number of weeks in regards to volatility, which, in my point of view, is actually a crystal clear indicator of the frailty of some factors of the body, u00e2 $ u00a6 one ought to expect most definitely a higher degree of dryness," he said.Another uncertainty going ahead is financial plan and also whether reserve banks will have to reduce costs extra strongly to battle a decline in the economic condition. In Switzerland, where UBS is actually headquartered, the reserve bank has reduced prices twice this year. The European Central Bank and the Bank of England have each declared one cut thus far." Knowing the celebrations which are theu00c2 unknowns on the horizon like the united state governmental political election, our experts became contented along with a really low dryness, right now our company are actually moving to a more regular routine," Bruno Verstraete, founder of Lakefield Wide range Management said to CNBC Wednesday." In the context of UBS, [even more volatility is] certainly not automatically a negative factor, because even more dryness indicates more exchanging profit," he incorporated.