.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market dryness could boost in the 2nd fifty percent of the year, yet he carries out certainly not feel the U.S. is heading into a recession.Global equities saw sharp auctions recently as financiers digested weak financial records out of the united state which brought up anxieties regarding an economic recession in the world's biggest economic situation. It additionally raised questions regarding whether the Federal Get needed to have to be a lot less hawkish along with its monetary plan posture. The reserve bank kept prices on grip in late July at a 23-year high.When asked them about the overview for the united state economy, Ermotti stated: "Not always a recession, but certainly a stagnation is actually feasible."" The macroeconomic signs are unclear enough to talk about economic slumps, as well as in fact, it's most likely early. What we know is actually that the Fed possesses good enough capability to action in and also assistance that, although it is actually visiting take some time, whatever they do to become then transferred in to the economic condition," the CEO informed CNBC on Wednesday after the financial institution reported its own second-quarter results.UBS anticipates that the Federal Get will cut fees through at least 50 basis factors this year. Presently, investors are actually split between a 50 and a 25 basis point cut at the Fed's upcoming appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti mentioned that our experts are actually probably to view much higher market volatility in the second half of the year, somewhat because of the U.S. election in Nov." That is actually one variable, yet additionally, if I examine the overall geopolitical picture, if I consider the macroeconomic picture, what we viewed in the last couple of weeks in relations to dryness, which, in my point of view, is actually a crystal clear indication of the delicacy of some elements of the system, u00e2 $ u00a6 one must expect definitely a greater level of dryness," he said.Another anxiety going forward is financial plan and whether central banks will certainly must reduce prices even more boldy to fight a stagnation in the economic condition. In Switzerland, where UBS is headquartered, the central bank has actually cut prices two times this year. The European Central Bank and the Financial Institution of England have both introduced one slice thus far." Understanding the occasions which are theu00c2 unknowns on the horizon like the united state governmental vote-casting, we came to be obsequious with an incredibly reduced volatility, currently our company are actually moving to a much more ordinary routine," Bruno Verstraete, creator of Lakefield Wealth Administration said to CNBC Wednesday." In the situation of UBS, [additional volatility is] certainly not always a poor thing, given that even more volatility suggests additional investing profit," he incorporated.