.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market volatility can heighten in the 2nd one-half of the year, however he does certainly not strongly believe the united state is actually heading right into a recession.Global equities observed sharp sell-offs recently as clients digested weak economical data away from the USA which raised fears about an economic decline around the world's most extensive economic situation. It also raised questions concerning whether the Federal Book needed to be much less hawkish with its own monetary plan standpoint. The central bank kept rates on grip in overdue July at a 23-year high.When asked them about the overview for the U.S. economic climate, Ermotti stated: "Certainly not automatically a recession, however undoubtedly a stagnation is achievable."" The macroeconomic clues are actually not clear adequate to discuss economic slumps, as well as in fact, it is actually perhaps premature. What we understand is that the Fed has enough ability to action in as well as help that, although it's going to take time, whatever they carry out to become then sent into the economic condition," the CEO informed CNBC on Wednesday after the bank mentioned its own second-quarter results.UBS anticipates that the Federal Reserve are going to cut prices through at least 50 manner aspects this year. Currently, traders are divided between a 50 and also a 25 manner point cut at the Fed's following appointment in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that our team are actually most likely to observe greater market volatility in the second one-half of the year, partly due to the USA political election in Nov." That's one aspect, however additionally, if I take a look at the general geopolitical picture, if I examine the macroeconomic picture, what our company found in the final number of full weeks in relations to volatility, which, in my standpoint, is actually a crystal clear indicator of the fragility of some elements of the system, u00e2 $ u00a6 one need to count on certainly a much higher level of dryness," he said.Another anxiety going ahead is financial plan and also whether central banks will have to reduce costs even more aggressively to cope with a downturn in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has cut rates twice this year. The International Reserve Bank as well as the Financial Institution of England possess both introduced one slice until now." Understanding the events which are actually theu00c2 unknowns on the horizon like the USA governmental vote-casting, our experts ended up being satisfied along with a really low dryness, currently our experts are actually changing to a more ordinary routine," Bruno Verstraete, founder of Lakefield Riches Administration told CNBC Wednesday." In the situation of UBS, [more dryness is] certainly not essentially a bad thing, given that more dryness means even more trading earnings," he included.