.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti stated Wednesday that market dryness could possibly boost in the second fifty percent of the year, however he carries out certainly not believe the USA is heading into a recession.Global equities observed sharp auctions last week as capitalists digested weak economical records out of the united state which reared anxieties concerning an economical downturn in the world's biggest economy. It also questioned about whether the Federal Reserve required to become much less hawkish with its own financial plan viewpoint. The central bank maintained prices on grip in overdue July at a 23-year high.When asked about the outlook for the USA economic climate, Ermotti mentioned: "Not necessarily a recession, but most definitely a slowdown is actually possible."" The macroeconomic signs are unclear sufficient to speak about recessions, and also actually, it is actually possibly premature. What we understand is that the Fed possesses good enough capacity to come in and support that, although it is actually heading to take a while, whatever they carry out to be after that transmitted into the economic situation," the chief executive officer said to CNBC on Wednesday after the banking company reported its own second-quarter results.UBS expects that the Federal Reserve will cut fees through at the very least fifty basis points this year. At the moment, traders are split between a 50 and also a 25 basis factor cut at the Fed's following appointment in September, according to LSEG data.Speaking to CNBC, Ermotti stated that we are very likely to view greater market dryness in the second half of the year, partly as a result of the USA political election in November." That is actually one aspect, but also, if I look at the general geopolitical picture, if I take a look at the macroeconomic photo, what our experts observed in the final number of weeks in relations to dryness, which, in my point of view, is a very clear indicator of the delicacy of some components of the device, u00e2 $ u00a6 one ought to expect certainly a greater level of dryness," he said.Another uncertainty going forward is monetary plan and whether reserve banks will definitely must cut costs extra boldy to deal with a slowdown in the economic condition. In Switzerland, where UBS is headquartered, the central bank has cut prices twice this year. The European Central Bank as well as the Bank of England possess both revealed one slice up until now." Recognizing the celebrations which are theu00c2 unknowns at hand like the U.S. presidential vote-casting, we came to be satisfied along with an incredibly reduced volatility, now our company are actually changing to a much more regular regimen," Bruno Verstraete, owner of Lakefield Riches Control said to CNBC Wednesday." In the circumstance of UBS, [additional dryness is] not always a bad trait, due to the fact that additional volatility means even more investing earnings," he added.