.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti said Wednesday that market volatility can intensify in the 2nd one-half of the year, however he performs not think the U.S. is actually heading into a recession.Global equities found stinging sell-offs recently as investors digested unstable economic information out of the united state which raised anxieties regarding a financial downturn on the planet's largest economic situation. It likewise questioned concerning whether the Federal Get needed to have to become a lot less hawkish along with its own monetary policy standpoint. The central bank maintained rates on grip in overdue July at a 23-year high.When asked them about the outlook for the united state economic situation, Ermotti stated: "Certainly not always a downturn, yet most definitely a stagnation is achievable."" The macroeconomic red flags are actually unclear enough to talk about economic downturns, and in fact, it's probably untimely. What we know is that the Fed possesses good enough capability to intervene and assistance that, although it's visiting take time, whatever they carry out to be at that point broadcast in to the economy," the chief executive officer said to CNBC on Wednesday after the banking company disclosed its second-quarter results.UBS anticipates that the Federal Reserve will certainly cut rates by a minimum of fifty basis points this year. Presently, traders are divided in between a 50 and a 25 manner point cut at the Fed's upcoming conference in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that our team are likely to find higher market dryness in the 2nd half of the year, partially due to the united state political election in November." That's one aspect, however additionally, if I check out the general geopolitical image, if I check out the macroeconomic image, what our experts saw in the last number of full weeks in terms of dryness, which, in my viewpoint, is actually a crystal clear sign of the fragility of some factors of the device, u00e2 $ u00a6 one must expect definitely a much higher degree of dryness," he said.Another unpredictability moving forward is actually financial policy and also whether central banks will must cut fees even more strongly to fight a stagnation in the economic situation. In Switzerland, where UBS is actually headquartered, the central bank has actually cut prices twice this year. The International Central Bank and the Banking Company of England have both revealed one slice so far." Understanding the occasions which are actually theu00c2 unknowns on the horizon like the USA presidential election, our team ended up being unconcerned with an extremely low dryness, right now our team are shifting to an even more typical program," Bruno Verstraete, owner of Lakefield Riches Management said to CNBC Wednesday." In the circumstance of UBS, [more volatility is actually] certainly not always a poor thing, given that more volatility suggests additional investing income," he added.