.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 second half of the year, however he performs not strongly believe the USA is heading right into a recession.Global equities found stinging auctions last week as capitalists digested unstable economical data out of the USA which brought up fears regarding a financial downturn in the world's most extensive economic condition. It additionally raised questions regarding whether the Federal Book required to become much less hawkish with its own financial plan viewpoint. The central bank maintained prices on hold in late July at a 23-year high.When inquired about the outlook for the U.S. economic condition, Ermotti stated: "Certainly not automatically a downturn, yet definitely a decline is achievable."" The macroeconomic indicators are actually not clear sufficient to talk about financial crises, as well as actually, it is actually possibly early. What we understand is actually that the Fed possesses enough capacity to action in and also assistance that, although it's going to take some time, whatever they perform to be at that point transmitted into the economic situation," the CEO informed CNBC on Wednesday after the financial institution stated its own second-quarter results.UBS counts on that the Federal Reserve will definitely cut prices by a minimum of 50 manner factors this year. Currently, investors are actually split in between a fifty as well as a 25 basis point cut at the Fed's next appointment in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that we are actually probably to observe higher market dryness in the 2nd one-half of the year, somewhat due to the USA political election in November." That's one aspect, however likewise, if I examine the general geopolitical picture, if I consider the macroeconomic image, what our experts observed in the last couple of weeks in regards to dryness, which, in my point of view, is a very clear sign of the frailty of some aspects of the system, u00e2 $ u00a6 one must expect definitely a greater level of volatility," he said.Another uncertainty moving forward is actually financial policy and whether central banks will certainly need to reduce rates extra strongly to battle a lag in the economic situation. In Switzerland, where UBS is actually headquartered, the reserve bank has actually reduced costs two times this year. The European Central Bank and the Financial Institution of England possess both introduced one cut thus far." Recognizing the events which are theu00c2 unknowns coming up like the USA governmental political election, our experts came to be unconcerned with a really reduced volatility, now our company are shifting to an extra ordinary regimen," Bruno Verstraete, founder of Lakefield Wide range Management told CNBC Wednesday." In the context of UBS, [additional volatility is actually] not essentially a poor trait, because additional volatility suggests additional investing revenue," he added.