.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market dryness can intensify in the second one-half of the year, yet he carries out not believe the united state is moving right into a recession.Global equities saw sharp sell-offs recently as capitalists digested unstable financial data away from the U.S. which reared concerns regarding a financial decline worldwide's most extensive economy. It likewise questioned regarding whether the Federal Reserve needed to have to be a lot less hawkish with its own financial plan viewpoint. The central bank always kept prices on grip in overdue July at a 23-year high.When asked about the expectation for the U.S. economy, Ermotti stated: "Certainly not necessarily a financial crisis, but undoubtedly a stagnation is achievable."" The macroeconomic clues are not clear enough to speak about downturns, as well as in fact, it's perhaps early. What we know is actually that the Fed has enough ability to intervene and also help that, although it's visiting take some time, whatever they perform to be at that point broadcast right into the economy," the CEO informed CNBC on Wednesday after the bank disclosed its own second-quarter results.UBS expects that the Federal Reserve will cut costs through a minimum of 50 manner aspects this year. Right now, traders are actually split between a fifty as well as a 25 basis factor cut at the Fed's following conference in September, according to LSEG data.Speaking to CNBC, Ermotti pointed out that our team are actually very likely to view much higher market volatility in the 2nd fifty percent of the year, partially due to the USA political election in Nov." That is actually one factor, however additionally, if I look at the total geopolitical photo, if I take a look at the macroeconomic image, what our company found in the final number of weeks in regards to dryness, which, in my viewpoint, is a clear indicator of the delicacy of some aspects of the unit, u00e2 $ u00a6 one must expect certainly a much higher level of volatility," he said.Another uncertainty going ahead is actually monetary policy as well as whether central banks will need to cut prices much more strongly to deal with a stagnation in the economic condition. In Switzerland, where UBS is headquartered, the reserve bank has cut prices two times this year. The International Reserve Bank and the Banking Company of England have both introduced one cut up until now." Recognizing the activities which are actually theu00c2 unknowns imminent like the USA governmental vote-casting, our experts ended up being complacent with a really reduced dryness, now we are actually changing to a much more regular program," Bruno Verstraete, founder of Lakefield Wealth Monitoring said to CNBC Wednesday." In the circumstance of UBS, [additional volatility is] not automatically a bad thing, since more volatility implies additional investing revenue," he included.