.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market dryness could heighten in the second half of the year, yet he does not feel the U.S. is actually heading in to a recession.Global equities saw stinging sell-offs recently as financiers digested weak economic information away from the USA which reared anxieties regarding an economic recession in the world's biggest economic situation. It likewise raised questions about whether the Federal Reserve required to be much less hawkish with its own financial plan stance. The central bank always kept costs on grip in late July at a 23-year high.When asked them about the outlook for the U.S. economy, Ermotti said: "Certainly not automatically a downturn, but certainly a decline is possible."" The macroeconomic indications are actually unclear enough to speak about downturns, as well as really, it is actually possibly premature. What we understand is that the Fed possesses enough capability to action in and also help that, although it is actually visiting take some time, whatever they perform to be after that transmitted into the economy," the CEO told CNBC on Wednesday after the banking company reported its own second-quarter results.UBS anticipates that the Federal Reserve are going to reduce fees through at the very least fifty basis factors this year. Currently, investors are divided in between a 50 and also a 25 basis point cut at the Fed's upcoming conference in September, according to LSEG data.Speaking to CNBC, Ermotti pointed out that our company are actually probably to see greater market dryness in the second one-half of the year, partly as a result of the united state vote-casting in November." That's one element, however additionally, if I consider the general geopolitical picture, if I consider the macroeconomic image, what we found in the last couple of full weeks in terms of volatility, which, in my viewpoint, is actually a clear indicator of the fragility of some components of the system, u00e2 $ u00a6 one must anticipate definitely a greater level of dryness," he said.Another unpredictability going ahead is financial policy as well as whether central banks will definitely have to cut fees even more boldy to battle a downturn in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has actually reduced rates two times this year. The European Central Bank as well as the Bank of England have both introduced one cut so far." Understanding the celebrations which are actually theu00c2 unknowns on the horizon like the USA presidential political election, our experts came to be obsequious with an incredibly reduced volatility, right now our company are actually moving to a more regular regimen," Bruno Verstraete, creator of Lakefield Wide range Management informed CNBC Wednesday." In the context of UBS, [more dryness is actually] not essentially a negative trait, due to the fact that additional dryness suggests more trading profit," he incorporated.