.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market dryness could boost in the 2nd one-half of the year, yet he performs not strongly believe the USA is heading in to a recession.Global equities saw sharp auctions recently as entrepreneurs digested weak financial records out of the united state which reared anxieties concerning an economic recession in the world's most extensive economic condition. It likewise questioned regarding whether the Federal Reserve needed to have to be less hawkish with its own financial policy standpoint. The central bank always kept prices on hold in late July at a 23-year high.When asked them about the outlook for the USA economic condition, Ermotti claimed: "Certainly not essentially an economic downturn, but most definitely a lag is actually possible."" The macroeconomic indicators are actually unclear sufficient to speak about economic slumps, as well as in fact, it's most likely premature. What we know is that the Fed has sufficient capacity to come in as well as support that, although it's visiting take some time, whatever they carry out to become after that broadcast in to the economy," the chief executive officer told CNBC on Wednesday after the bank reported its own second-quarter results.UBS counts on that the Federal Book will reduce prices by at least fifty basis points this year. Currently, traders are actually divided in between a 50 and also a 25 basis aspect cut at the Fed's following conference in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that our experts are actually probably to observe much higher market dryness in the 2nd one-half of the year, partially as a result of the U.S. election in Nov." That's one factor, but also, if I check out the overall geopolitical picture, if I examine the macroeconomic picture, what our company found in the final number of full weeks in regards to dryness, which, in my standpoint, is a clear indication of the delicacy of some elements of the device, u00e2 $ u00a6 one ought to anticipate certainly a greater degree of volatility," he said.Another uncertainty going forward is monetary policy and also whether central banks will definitely have to reduce costs even more aggressively to fight a lag in the economic situation. In Switzerland, where UBS is headquartered, the reserve bank has actually reduced costs two times this year. The European Reserve Bank as well as the Financial Institution of England possess each revealed one slice until now." Understanding the celebrations which are actually theu00c2 unknowns coming up like the united state presidential election, our team came to be unconcerned along with a really low volatility, now we are switching to an extra regular program," Bruno Verstraete, creator of Lakefield Wide range Control told CNBC Wednesday." In the situation of UBS, [even more dryness is] certainly not necessarily a bad point, due to the fact that more dryness implies even more exchanging profit," he added.