.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti stated Wednesday that market volatility could possibly intensify in the second half of the year, yet he performs not believe the USA is moving into a recession.Global equities found stinging sell-offs last week as clients digested weak financial records away from the united state which brought up worries about an economic recession on earth's largest economic situation. It likewise questioned concerning whether the Federal Book required to become a lot less hawkish with its own monetary policy posture. The reserve bank kept costs on hold in late July at a 23-year high.When asked them about the overview for the U.S. economic condition, Ermotti claimed: "Not necessarily an economic crisis, but absolutely a lag is actually feasible."" The macroeconomic red flags are unclear enough to discuss economic slumps, and in fact, it's possibly premature. What we know is actually that the Fed possesses sufficient capacity to intervene and also assistance that, although it is actually visiting take some time, whatever they do to become after that broadcast into the economic climate," the chief executive officer told CNBC on Wednesday after the banking company disclosed its second-quarter results.UBS counts on that the Federal Reserve will definitely reduce rates by a minimum of fifty basis points this year. Right now, investors are divided between a 50 and a 25 basis point cut at the Fed's upcoming appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti said that our company are actually most likely to view greater market dryness in the 2nd one-half of the year, partly because of the united state election in November." That's one factor, but also, if I check out the total geopolitical picture, if I look at the macroeconomic picture, what our experts observed in the final number of full weeks in regards to dryness, which, in my viewpoint, is actually a clear sign of the delicacy of some components of the unit, u00e2 $ u00a6 one must count on most definitely a much higher degree of dryness," he said.Another anxiety moving forward is actually monetary policy as well as whether reserve banks will definitely need to cut fees more boldy to fight a lag in the economic climate. In Switzerland, where UBS is headquartered, the reserve bank has actually cut rates two times this year. The European Central Bank and also the Financial Institution of England possess both revealed one cut thus far." Recognizing the activities which are actually theu00c2 unknowns on the horizon like the USA governmental political election, we came to be obsequious along with an extremely low volatility, right now our experts are changing to an even more regular regimen," Bruno Verstraete, founder of Lakefield Wide range Monitoring said to CNBC Wednesday." In the context of UBS, [more volatility is actually] certainly not essentially a bad point, since additional volatility suggests additional exchanging income," he included.