.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti stated Wednesday that market dryness can increase in the 2nd fifty percent of the year, yet he carries out not strongly believe the USA is actually heading into a recession.Global equities viewed sharp auctions recently as financiers digested weak economical data away from the USA which brought up anxieties about an economical recession worldwide's largest economic situation. It also raised questions regarding whether the Federal Reserve needed to become a lot less hawkish along with its financial plan stance. The central bank kept fees on hold in overdue July at a 23-year high.When asked about the expectation for the united state economy, Ermotti said: "Not essentially an economic downturn, however undoubtedly a stagnation is actually achievable."" The macroeconomic signs are actually not clear enough to speak about economic downturns, and in fact, it is actually perhaps early. What we know is actually that the Fed possesses enough ability to intervene and also help that, although it is actually heading to take a while, whatever they do to become then broadcast in to the economic climate," the chief executive officer informed CNBC on Wednesday after the financial institution disclosed its second-quarter results.UBS anticipates that the Federal Reserve are going to reduce fees by at least fifty manner factors this year. Presently, investors are split between a fifty and a 25 manner aspect cut at the Fed's next appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our company are probably to observe higher market dryness in the 2nd one-half of the year, partially due to the united state election in November." That is actually one variable, however likewise, if I consider the overall geopolitical picture, if I look at the macroeconomic picture, what our company viewed in the last couple of weeks in terms of dryness, which, in my viewpoint, is a very clear indication of the frailty of some components of the device, u00e2 $ u00a6 one must anticipate absolutely a greater degree of volatility," he said.Another uncertainty going ahead is financial policy as well as whether central banks will definitely have to cut prices much more boldy to fight a downturn in the economic condition. In Switzerland, where UBS is actually headquartered, the reserve bank has cut costs two times this year. The International Reserve Bank as well as the Financial Institution of England possess each introduced one slice until now." Knowing the occasions which are theu00c2 unknowns coming up like the united state governmental political election, our team ended up being unconcerned along with an incredibly reduced dryness, right now our experts are moving to a much more regular program," Bruno Verstraete, founder of Lakefield Riches Management informed CNBC Wednesday." In the situation of UBS, [even more dryness is actually] certainly not necessarily a negative thing, because additional dryness means even more investing profit," he incorporated.