.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti stated Wednesday that market volatility could increase in the second fifty percent of the year, however he carries out certainly not feel the united state is actually heading in to a recession.Global equities found stinging auctions last week as entrepreneurs digested unstable financial information away from the U.S. which reared worries about an economical recession around the world's largest economic condition. It likewise questioned regarding whether the Federal Get needed to be less hawkish with its monetary plan stance. The reserve bank maintained rates on hold in late July at a 23-year high.When asked them about the outlook for the U.S. economic climate, Ermotti claimed: "Not always a recession, yet certainly a downturn is feasible."" The macroeconomic indications are actually unclear sufficient to refer to economic downturns, and also really, it's probably untimely. What we understand is that the Fed has sufficient capacity to step in and support that, although it is actually visiting take time, whatever they do to become then broadcast right into the economic condition," the chief executive officer told CNBC on Wednesday after the banking company disclosed its own second-quarter results.UBS anticipates that the Federal Book will definitely cut rates by a minimum of fifty basis factors this year. Presently, investors are divided in between a fifty as well as a 25 basis aspect cut at the Fed's upcoming meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti said that our team are actually very likely to find greater market dryness in the 2nd one-half of the year, partially as a result of the united state political election in November." That is actually one variable, yet also, if I take a look at the general geopolitical image, if I check out the macroeconomic picture, what our team found in the final number of weeks in relations to volatility, which, in my perspective, is actually a very clear indication of the fragility of some elements of the body, u00e2 $ u00a6 one need to anticipate undoubtedly a much higher degree of volatility," he said.Another uncertainty going ahead is monetary policy and also whether reserve banks will definitely have to cut rates a lot more aggressively to combat a decline in the economic condition. In Switzerland, where UBS is actually headquartered, the reserve bank has reduced costs twice this year. The International Reserve Bank as well as the Financial Institution of England have both introduced one slice so far." Understanding the occasions which are actually theu00c2 unknowns imminent like the united state presidential election, we became unconcerned along with an incredibly low volatility, right now our experts are actually shifting to an extra typical regime," Bruno Verstraete, founder of Lakefield Wealth Management informed CNBC Wednesday." In the situation of UBS, [more volatility is] not necessarily a poor point, considering that even more dryness means more trading earnings," he included.