.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market dryness could escalate in the 2nd one-half of the year, however he carries out not think the USA is actually heading into a recession.Global equities found stinging auctions last week as investors digested unstable economic information out of the U.S. which raised anxieties about a financial recession on earth's largest economic situation. It likewise raised questions concerning whether the Federal Reserve needed to become less hawkish with its own financial policy stance. The reserve bank kept costs on grip in overdue July at a 23-year high.When asked about the expectation for the united state economic situation, Ermotti pointed out: "Not essentially a financial crisis, yet certainly a lag is achievable."" The macroeconomic indicators are unclear adequate to talk about financial crises, and really, it is actually probably untimely. What we know is actually that the Fed has good enough ability to come in as well as help that, although it's mosting likely to take a while, whatever they carry out to become at that point transmitted in to the economic situation," the CEO told CNBC on Wednesday after the banking company reported its own second-quarter results.UBS anticipates that the Federal Reserve will reduce costs through at the very least fifty basis points this year. Right now, traders are divided in between a fifty as well as a 25 manner factor cut at the Fed's following meeting in September, according to LSEG data.Speaking to CNBC, Ermotti said that we are actually very likely to observe greater market volatility in the 2nd fifty percent of the year, somewhat because of the U.S. vote-casting in Nov." That's one element, yet additionally, if I consider the overall geopolitical picture, if I take a look at the macroeconomic image, what our company viewed in the final number of full weeks in regards to volatility, which, in my point of view, is a very clear indicator of the delicacy of some components of the device, u00e2 $ u00a6 one must count on definitely a higher degree of volatility," he said.Another uncertainty going ahead is financial plan and also whether reserve banks are going to need to reduce fees even more strongly to cope with a lag in the economy. In Switzerland, where UBS is headquartered, the reserve bank has reduced costs twice this year. The International Reserve Bank and also the Financial Institution of England have both declared one slice so far." Recognizing the celebrations which are actually theu00c2 unknowns imminent like the USA governmental vote-casting, our experts ended up being obsequious with a really reduced dryness, right now our team are actually switching to a more ordinary program," Bruno Verstraete, owner of Lakefield Wide range Administration informed CNBC Wednesday." In the situation of UBS, [even more dryness is actually] not necessarily a poor point, because even more dryness indicates even more investing earnings," he added.