.Sergio Ermotti, ceo 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 not think the united state is moving right into a recession.Global equities saw sharp auctions last week as entrepreneurs digested unstable financial data out of the united state which raised concerns concerning an economic recession on earth's biggest economic condition. It additionally raised questions concerning whether the Federal Reserve needed to be a lot less hawkish with its monetary plan stance. The reserve bank always kept rates on hold in late July at a 23-year high.When asked them about the expectation for the U.S. economic situation, Ermotti said: "Certainly not essentially a recession, but absolutely a stagnation is possible."" The macroeconomic indicators are actually unclear enough to talk about financial crises, as well as in fact, it's most likely early. What we understand is that the Fed possesses enough capacity to intervene and support that, although it's visiting take some time, whatever they carry out to be then transferred into the economic situation," the chief executive officer said to CNBC on Wednesday after the financial institution disclosed its second-quarter results.UBS counts on that the Federal Get will certainly cut rates by a minimum of fifty basis aspects this year. Currently, traders are actually split between a 50 as well as a 25 basis point cut at the Fed's upcoming conference in September, according to LSEG data.Speaking to CNBC, Ermotti stated that our company are very likely to view higher market dryness in the 2nd half of the year, somewhat because of the united state political election in Nov." That's one variable, but likewise, if I consider the general geopolitical picture, if I take a look at the macroeconomic picture, what our team saw in the final couple of full weeks in relations to volatility, which, in my point of view, is actually a clear indication of the fragility of some aspects of the unit, u00e2 $ u00a6 one need to count on definitely a much higher degree of volatility," he said.Another unpredictability going forward is actually financial policy and also whether reserve banks will definitely need to reduce fees even more boldy to fight a lag in the economic climate. In Switzerland, where UBS is headquartered, the central bank has reduced fees twice this year. The European Central Bank and also the Financial Institution of England possess each declared one cut up until now." Understanding the occasions which are actually theu00c2 unknowns coming up like the U.S. presidential political election, our company came to be unconcerned with an extremely reduced volatility, now we are actually changing to a much more ordinary program," Bruno Verstraete, founder of Lakefield Riches Monitoring said to CNBC Wednesday." In the circumstance of UBS, [even more dryness is actually] certainly not always a poor factor, since additional volatility means even more trading profit," he included.