.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market volatility could increase in the second half of the year, yet he performs certainly not believe the U.S. is actually heading into a recession.Global equities found sharp sell-offs last week as investors digested unstable economical information away from the U.S. which brought up fears about a financial decline worldwide's biggest economic situation. It also raised questions concerning whether the Federal Book needed to have to become much less hawkish with its financial plan standpoint. The reserve bank kept costs on hold in overdue July at a 23-year high.When asked about the expectation for the U.S. economy, Ermotti pointed out: "Certainly not essentially an economic downturn, however undoubtedly a decline is possible."" The macroeconomic indications are not clear sufficient to discuss economic slumps, and actually, it's probably early. What we know is that the Fed possesses sufficient ability to action in and also support that, although it is actually visiting take some time, whatever they do to be then broadcast into the economic situation," the chief executive officer said to CNBC on Wednesday after the financial institution stated its own second-quarter results.UBS counts on that the Federal Get will certainly cut rates through at the very least fifty basis factors this year. Right now, investors are split in between a fifty and a 25 manner aspect cut at the Fed's following conference in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our experts are actually very likely to see greater market volatility in the 2nd one-half of the year, partially as a result of the united state election in November." That's one element, yet also, if I look at the general geopolitical image, if I check out the macroeconomic picture, what we observed in the last couple of weeks in regards to dryness, which, in my viewpoint, is a crystal clear sign of the delicacy of some aspects of the device, u00e2 $ u00a6 one should expect undoubtedly a greater degree of dryness," he said.Another uncertainty moving forward is actually financial plan and also whether reserve banks are going to need to cut costs much more boldy to combat a stagnation in the economy. In Switzerland, where UBS is headquartered, the central bank has actually cut costs two times this year. The European Reserve Bank and the Bank of England have each introduced one slice until now." Recognizing the activities which are actually theu00c2 unknowns on the horizon like the united state governmental political election, our company ended up being contented along with an incredibly reduced dryness, currently our company are moving to an extra regular routine," Bruno Verstraete, creator of Lakefield Riches Administration told CNBC Wednesday." In the context of UBS, [even more volatility is] not always a bad point, since additional volatility suggests additional exchanging profit," he incorporated.