.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market volatility can increase in the second one-half of the year, however he carries out certainly not feel the USA is heading right into a recession.Global equities viewed stinging auctions last week as investors digested unstable economic information out of the U.S. which reared worries about an economical slump worldwide's largest economic situation. It likewise raised questions regarding whether the Federal Reserve needed to become less hawkish along with its own financial plan stance. The reserve bank always kept rates on hold in late July at a 23-year high.When inquired about the expectation for the USA economic situation, Ermotti said: "Certainly not always a financial crisis, but absolutely a lag is actually feasible."" The macroeconomic clues are actually unclear adequate to speak about financial crises, and also in fact, it's possibly untimely. What we understand is that the Fed has enough ability to come in and also help that, although it is actually visiting take time, whatever they perform to be at that point transmitted right into the economic condition," the CEO informed CNBC on Wednesday after the bank reported its second-quarter results.UBS expects that the Federal Get are going to cut costs through at least fifty manner aspects this year. Presently, traders are split between a fifty and a 25 basis point cut at the Fed's following conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that we are very likely to view much higher market dryness in the second fifty percent of the year, partially due to the united state vote-casting in November." That's one aspect, yet additionally, if I check out the general geopolitical photo, if I examine the macroeconomic picture, what our team saw in the last couple of full weeks in relations to volatility, which, in my perspective, is a clear indication of the fragility of some components of the unit, u00e2 $ u00a6 one must expect definitely a much higher degree of volatility," he said.Another uncertainty moving forward is monetary plan as well as whether reserve banks are going to have to reduce costs even more aggressively to deal with a stagnation in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has actually cut costs twice this year. The International Central Bank and the Banking Company of England have each declared one slice until now." Understanding the celebrations which are actually theu00c2 unknowns coming up like the united state presidential vote-casting, our team became complacent with an extremely low dryness, now our experts are actually changing to an even more normal program," Bruno Verstraete, owner of Lakefield Wide range Management informed CNBC Wednesday." In the context of UBS, [additional dryness is] certainly not automatically a negative thing, due to the fact that more dryness implies additional exchanging profit," he included.