.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti said Wednesday that market volatility could boost in the second half of the year, however he does certainly not feel the U.S. is actually heading into a recession.Global equities saw sharp auctions recently as entrepreneurs digested unstable economical records away from the USA which reared anxieties concerning an economic recession around the world's largest economic climate. It also questioned concerning whether the Federal Get needed to become much less hawkish along with its own monetary policy stance. The central bank maintained costs on grip in overdue July at a 23-year high.When asked them about the outlook for the U.S. economic climate, Ermotti pointed out: "Not essentially an economic downturn, yet most definitely a slowdown is achievable."" The macroeconomic indications are actually unclear sufficient to discuss financial crises, and actually, it is actually possibly premature. What we understand is actually that the Fed has sufficient capacity to intervene and help that, although it is actually going to take some time, whatever they do to become at that point transmitted into the economic situation," the CEO said to CNBC on Wednesday after the banking company stated its second-quarter results.UBS anticipates that the Federal Book will cut rates through at least fifty basis aspects this year. Currently, investors are divided between a 50 and also a 25 basis factor cut at the Fed's next meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that we are actually most likely to find higher market volatility in the 2nd one-half of the year, partly due to the USA vote-casting in Nov." That is actually one aspect, but also, if I take a look at the total geopolitical picture, if I take a look at the macroeconomic image, what our experts saw in the final number of weeks in terms of volatility, which, in my point of view, is actually a clear indicator of the frailty of some factors of the unit, u00e2 $ u00a6 one must anticipate undoubtedly a higher level of dryness," he said.Another unpredictability going ahead is financial policy and whether reserve banks will definitely have to reduce costs even more aggressively to fight a lag in the economic condition. In Switzerland, where UBS is actually headquartered, the central bank has actually cut rates two times this year. The European Reserve Bank and also the Bank of England possess each announced one cut so far." Understanding the activities which are theu00c2 unknowns at hand like the united state governmental election, our company ended up being unconcerned with an incredibly low dryness, currently our experts are changing to a much more regular program," Bruno Verstraete, founder of Lakefield Wide range Management told CNBC Wednesday." In the circumstance of UBS, [more volatility is] not essentially a bad factor, because more volatility indicates more exchanging profit," he added.