.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market volatility could possibly intensify in the second half of the year, yet he performs certainly not believe the U.S. is moving in to a recession.Global equities observed sharp sell-offs last week as capitalists digested unstable economical records out of the U.S. which reared concerns concerning an economical downturn on earth's largest economic climate. It likewise raised questions about whether the Federal Reserve required to become less hawkish with its own financial plan stance. The reserve bank kept fees on grip in late July at a 23-year high.When asked them about the expectation for the USA economy, Ermotti pointed out: "Certainly not essentially a downturn, however most definitely a downturn is actually achievable."" The macroeconomic indicators are actually not clear sufficient to discuss economic slumps, as well as actually, it's probably early. What we understand is that the Fed possesses good enough capacity to come in as well as help that, although it's going to take a while, whatever they carry out to be then transmitted into the economy," the CEO said to CNBC on Wednesday after the banking company stated its second-quarter results.UBS counts on that the Federal Book are going to cut prices through a minimum of fifty manner factors this year. Currently, investors are split in between a fifty as well as a 25 basis aspect cut at the Fed's following appointment in September, according to LSEG data.Speaking to CNBC, Ermotti pointed out that our team are likely to observe greater market volatility in the 2nd fifty percent of the year, partially as a result of the U.S. political election in Nov." That is actually one element, but likewise, if I look at the overall geopolitical picture, if I take a look at the macroeconomic picture, what our company observed in the final couple of weeks in regards to volatility, which, in my perspective, is actually a clear sign of the fragility of some elements of the device, u00e2 $ u00a6 one need to anticipate most definitely a higher degree of dryness," he said.Another uncertainty going ahead is actually financial plan as well as whether reserve banks will definitely have to reduce prices even more strongly to cope with a lag in the economy. In Switzerland, where UBS is actually headquartered, the central bank has actually reduced costs twice this year. The International Reserve Bank and the Bank of England have both announced one slice so far." Understanding the celebrations which are theu00c2 unknowns at hand like the U.S. governmental vote-casting, we became obsequious with a very reduced dryness, right now our experts are switching to a much more usual regime," Bruno Verstraete, founder of Lakefield Wide range Administration informed CNBC Wednesday." In the circumstance of UBS, [even more volatility is] not necessarily a bad thing, due to the fact that even more dryness suggests additional investing income," he incorporated.