.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market dryness could heighten in the 2nd fifty percent of the year, however he performs not believe the united state is heading in to a recession.Global equities saw stinging auctions last week as financiers digested unstable financial data away from the U.S. which brought up concerns regarding an economical recession on the planet's largest economic climate. It also questioned concerning whether the Federal Get required to become much less hawkish with its own monetary plan stance. The reserve bank always kept fees on hold in overdue July at a 23-year high.When asked about the outlook for the U.S. economy, Ermotti claimed: "Not always an economic slump, yet most definitely a lag is actually possible."" The macroeconomic clues are actually unclear sufficient to refer to economic crises, and also actually, it is actually possibly early. What we understand is actually that the Fed has enough capability to step in as well as assistance that, although it's heading to take a while, whatever they carry out to become then transferred into the economic condition," the chief executive officer informed CNBC on Wednesday after the banking company stated its second-quarter results.UBS anticipates that the Federal Reserve will definitely cut costs through at least fifty basis points this year. Currently, traders are divided between a 50 and a 25 basis aspect cut at the Fed's upcoming conference in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that our company are likely to view higher market dryness in the second half of the year, partly as a result of the U.S. vote-casting in Nov." That's one variable, but likewise, if I take a look at the total geopolitical picture, if I consider the macroeconomic picture, what we found in the last number of weeks in terms of dryness, which, in my perspective, is a clear sign of the frailty of some components of the body, u00e2 $ u00a6 one ought to expect most definitely a much higher level of dryness," he said.Another unpredictability going forward is actually financial policy and also whether central banks are going to have to cut fees a lot more strongly to fight a slowdown in the economy. In Switzerland, where UBS is actually headquartered, the central bank has actually reduced rates two times this year. The European Reserve Bank as well as the Financial Institution of England have both introduced one cut up until now." Recognizing the celebrations which are actually theu00c2 unknowns coming up like the united state governmental political election, our team ended up being satisfied along with a very reduced volatility, currently our company are actually shifting to an even more normal program," Bruno Verstraete, creator of Lakefield Wide range Administration informed CNBC Wednesday." In the circumstance of UBS, [additional dryness is] not automatically a bad trait, considering that even more volatility indicates even more trading income," he incorporated.