.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti said Wednesday that market volatility could possibly boost in the second one-half of the year, but he does certainly not feel the united state is heading right into a recession.Global equities found sharp auctions last week as investors digested unstable financial information away from the united state which raised anxieties regarding a financial recession in the world's most extensive economic climate. It additionally raised questions concerning whether the Federal Reserve required to be a lot less hawkish with its own financial plan posture. The central bank maintained prices on hold in late July at a 23-year high.When inquired about the outlook for the U.S. economy, Ermotti claimed: "Not automatically an economic crisis, yet absolutely a downturn is feasible."" The macroeconomic indications are unclear adequate to discuss downturns, as well as really, it is actually probably early. What we know is actually that the Fed possesses sufficient ability to action in as well as support that, although it's heading to require time, whatever they carry out to be then broadcast in to the economy," the chief executive officer told CNBC on Wednesday after the financial institution reported its own second-quarter results.UBS counts on that the Federal Get will cut rates through a minimum of 50 manner factors this year. Right now, investors are split between a fifty and a 25 basis aspect cut at the Fed's upcoming appointment in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that we are most likely to view greater market volatility in the 2nd half of the year, partly because of the U.S. vote-casting in Nov." That's one element, yet likewise, if I check out the general geopolitical picture, if I examine the macroeconomic image, what we viewed in the last number of full weeks in terms of dryness, which, in my point of view, is actually a crystal clear sign of the delicacy of some components of the device, u00e2 $ u00a6 one ought to expect most definitely a much higher degree of volatility," he said.Another anxiety moving forward is actually monetary plan as well as whether reserve banks will have to cut rates more strongly to combat a decline in the economic situation. In Switzerland, where UBS is actually headquartered, the reserve bank has actually cut prices twice this year. The International Central Bank and the Financial Institution of England have both announced one slice thus far." Understanding the occasions which are actually theu00c2 unknowns at hand like the united state presidential vote-casting, our team became contented with a quite reduced dryness, right now our team are changing to an extra normal routine," Bruno Verstraete, creator of Lakefield Wide range Monitoring informed CNBC Wednesday." In the context of UBS, [even more dryness is] not necessarily a poor thing, since more volatility indicates additional exchanging income," he incorporated.