.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market dryness might increase in the 2nd fifty percent of the year, yet he does certainly not strongly believe the USA is moving into a recession.Global equities viewed stinging sell-offs last week as real estate investors digested unstable financial records out of the USA which raised fears concerning a financial recession on earth's most extensive economy. It additionally questioned concerning whether the Federal Reserve needed to have to become much less hawkish along with its own financial plan position. The reserve bank always kept prices on grip in late July at a 23-year high.When asked about the overview for the USA economy, Ermotti mentioned: "Not always a downturn, but certainly a slowdown is actually possible."" The macroeconomic indications are actually not clear enough to talk about downturns, and in fact, it is actually perhaps early. What we understand is that the Fed possesses good enough ability to come in and assistance that, although it is actually heading to take a while, whatever they do to become at that point sent into the economic condition," the CEO informed CNBC on Wednesday after the financial institution reported its second-quarter results.UBS anticipates that the Federal Get are going to reduce rates by a minimum of 50 basis points this year. Currently, traders are split between a fifty and also a 25 basis aspect cut at the Fed's following conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our team are likely to view greater market dryness in the 2nd one-half of the year, partially because of the united state political election in Nov." That is actually one variable, but likewise, if I consider the overall geopolitical photo, if I check out the macroeconomic photo, what our team viewed in the last couple of weeks in relations to dryness, which, in my point of view, is a very clear sign of the fragility of some aspects of the system, u00e2 $ u00a6 one must count on most definitely a higher degree of dryness," he said.Another uncertainty going ahead is actually monetary policy as well as whether reserve banks will definitely have to cut rates much more strongly to deal with a lag in the economic situation. In Switzerland, where UBS is actually headquartered, the reserve bank has cut fees two times this year. The European Reserve Bank and also the Bank of England have each revealed one slice thus far." Recognizing the celebrations which are theu00c2 unknowns on the horizon like the united state governmental political election, our experts became complacent with a quite reduced volatility, right now our team are shifting to an even more usual regimen," Bruno Verstraete, creator of Lakefield Riches Management said to CNBC Wednesday." In the context of UBS, [even more volatility is] not essentially a negative thing, since more volatility means more trading profit," he incorporated.