.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market volatility could escalate in the 2nd half of the year, however he carries out certainly not feel the united state is actually moving into a recession.Global equities observed sharp sell-offs recently as capitalists digested unstable economic data out of the united state which increased concerns regarding an economic slump on the planet's largest economic climate. It also questioned concerning whether the Federal Reserve needed to become less hawkish along with its financial policy standpoint. The central bank maintained fees on hold in overdue July at a 23-year high.When asked about the expectation for the united state economic situation, Ermotti stated: "Not automatically a downturn, but undoubtedly a decline is actually possible."" The macroeconomic red flags are unclear adequate to talk about financial crises, and actually, it's probably early. What we know is that the Fed has good enough capability to come in and also help that, although it's heading to take time, whatever they perform to be after that sent into the economic condition," the CEO said to CNBC on Wednesday after the banking company disclosed its own second-quarter results.UBS anticipates that the Federal Book will definitely reduce prices by at the very least fifty basis factors this year. Currently, investors are actually divided in between a fifty and also a 25 basis aspect cut at the Fed's upcoming meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that our company are actually likely to see higher market volatility in the 2nd fifty percent of the year, partially because of the united state political election in Nov." That is actually one element, but likewise, if I consider the overall geopolitical picture, if I check out the macroeconomic image, what our team saw in the final couple of full weeks in terms of volatility, which, in my perspective, is actually a clear indication of the frailty of some components of the unit, u00e2 $ u00a6 one need to count on certainly a higher level of dryness," he said.Another anxiety moving forward is financial plan as well as whether central banks are going to have to reduce costs a lot more boldy to battle a downturn in the economic situation. In Switzerland, where UBS is headquartered, the reserve bank has actually cut rates twice this year. The European Central Bank and also the Banking Company of England possess both declared one cut so far." Understanding the occasions which are actually theu00c2 unknowns coming up like the USA governmental political election, our company came to be contented with a very reduced volatility, currently our experts are actually shifting to a more regular program," Bruno Verstraete, founder of Lakefield Wealth Management told CNBC Wednesday." In the context of UBS, [additional dryness is actually] not essentially a poor factor, since more dryness indicates additional trading revenue," he added.