.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market volatility could intensify in the second one-half of the year, however he carries out certainly not strongly believe the U.S. is actually heading in to a recession.Global equities saw stinging sell-offs last week as capitalists digested weak economic data away from the USA which reared concerns about an economical recession around the world's biggest economy. It also questioned regarding whether the Federal Book needed to become a lot less hawkish with its monetary plan position. The reserve bank always kept costs on grip in overdue July at a 23-year high.When inquired about the outlook for the united state economic condition, Ermotti mentioned: "Not always a recession, yet definitely a downturn is feasible."" The macroeconomic signs are actually not clear adequate to speak about financial crises, and really, it's probably premature. What we understand is actually that the Fed possesses enough capacity to step in as well as help that, although it's going to require time, whatever they do to become at that point transmitted in to the economic condition," the chief executive officer told CNBC on Wednesday after the financial institution reported its own second-quarter results.UBS counts on that the Federal Get are going to reduce fees by at the very least 50 manner aspects this year. Presently, traders are actually divided between a 50 and also a 25 manner point cut at the Fed's following conference in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that our team are probably to see greater market volatility in the second one-half of the year, partly due to the USA political election in Nov." That is actually one variable, but also, if I check out the general geopolitical image, if I take a look at the macroeconomic picture, what our company observed in the last couple of weeks in relations to volatility, which, in my point of view, is actually a crystal clear indication of the fragility of some elements of the body, u00e2 $ u00a6 one must count on definitely a much higher level of dryness," he said.Another uncertainty moving forward is actually financial plan and also whether reserve banks will must reduce fees even more boldy to combat a slowdown in the economic situation. In Switzerland, where UBS is actually headquartered, the central bank has reduced prices twice this year. The International Reserve Bank and also the Financial Institution of England have both revealed one cut so far." Understanding the celebrations which are theu00c2 unknowns coming up like the U.S. governmental vote-casting, our team became unconcerned along with an incredibly reduced dryness, now our company are actually shifting to an even more usual routine," Bruno Verstraete, founder of Lakefield Riches Management said to CNBC Wednesday." In the circumstance of UBS, [more dryness is actually] not always a poor point, because additional dryness implies more investing revenue," he included.