.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti said Wednesday that market dryness might escalate in the 2nd one-half of the year, yet he performs not think the united state is moving right into a recession.Global equities viewed sharp auctions last week as financiers digested weak financial data out of the U.S. which brought up anxieties concerning an economical decline worldwide's largest economic situation. It additionally raised questions about whether the Federal Reserve required to become a lot less hawkish along with its financial plan stance. The central bank always kept fees on hold in overdue July at a 23-year high.When asked about the overview for the USA economy, Ermotti mentioned: "Not automatically an economic crisis, yet definitely a downturn is actually achievable."" The macroeconomic indications are unclear sufficient to discuss downturns, and also actually, it is actually perhaps premature. What we know is actually that the Fed possesses enough ability to intervene as well as support that, although it's going to require time, whatever they carry out to be then broadcast in to the economic climate," the CEO told CNBC on Wednesday after the financial institution reported its own second-quarter results.UBS expects that the Federal Get are going to reduce prices by a minimum of fifty basis points this year. Currently, investors are actually split between a 50 and a 25 basis point cut at the Fed's next meeting in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our team are actually likely to see much higher market volatility in the 2nd half of the year, partially as a result of the USA political election in Nov." That is actually one aspect, but additionally, if I take a look at the overall geopolitical image, if I take a look at the macroeconomic picture, what our team found in the last couple of full weeks in relations to dryness, which, in my standpoint, is actually a very clear indication of the delicacy of some aspects of the system, u00e2 $ u00a6 one need to count on absolutely a greater degree of dryness," he said.Another anxiety moving forward is actually financial policy and whether central banks will definitely have to cut fees a lot more aggressively to cope with a decline in the economic condition. In Switzerland, where UBS is actually headquartered, the central bank has cut costs twice this year. The International Central Bank and also the Financial Institution of England have both declared one slice up until now." Understanding the events which are theu00c2 unknowns at hand like the united state governmental election, our experts ended up being contented along with a really reduced dryness, right now our team are switching to an extra normal regime," Bruno Verstraete, owner of Lakefield Wide range Administration informed CNBC Wednesday." In the circumstance of UBS, [even more dryness is actually] not essentially a poor trait, considering that additional volatility indicates additional trading profit," he incorporated.