.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti stated Wednesday that market volatility could increase in the 2nd half of the year, but he does not strongly believe the USA is heading in to a recession.Global equities observed stinging auctions last week as real estate investors digested unstable economic records out of the united state which reared concerns regarding an economic decline on the planet's most extensive economic climate. It additionally questioned regarding whether the Federal Book required to become a lot less hawkish with its own monetary plan posture. The central bank always kept costs on hold in late July at a 23-year high.When asked about the expectation for the U.S. economic condition, Ermotti claimed: "Not necessarily an economic slump, however absolutely a lag is actually feasible."" The macroeconomic red flags are actually not clear sufficient to talk about recessions, and in fact, it's perhaps premature. What we know is actually that the Fed has good enough capability to step in as well as assistance that, although it is actually heading to take some time, whatever they do to be then transmitted right into the economy," the CEO informed CNBC on Wednesday after the banking company disclosed its second-quarter results.UBS expects that the Federal Reserve will definitely reduce prices through a minimum of 50 basis aspects this year. Right now, investors are divided in between a 50 and a 25 basis aspect cut at the Fed's next conference in September, according to LSEG data.Speaking to CNBC, Ermotti said that our team are actually very likely to observe higher market dryness in the 2nd half of the year, partly because of the USA political election in Nov." That is actually one element, but additionally, if I consider the overall geopolitical photo, if I check out the macroeconomic photo, what our experts found in the last number of full weeks in relations to volatility, which, in my point of view, is actually a very clear indication of the delicacy of some elements of the unit, u00e2 $ u00a6 one ought to anticipate undoubtedly a higher level of volatility," he said.Another anxiety going forward is actually financial policy and also whether reserve banks will definitely need to cut rates a lot more strongly to deal with a decline in the economic situation. In Switzerland, where UBS is headquartered, the central bank has actually reduced costs twice this year. The European Reserve Bank as well as the Banking Company of England possess both introduced one slice up until now." Recognizing the occasions which are actually theu00c2 unknowns imminent like the U.S. governmental election, we ended up being complacent with a very low volatility, right now we are changing to an extra normal routine," Bruno Verstraete, founder of Lakefield Wide range Management told CNBC Wednesday." In the circumstance of UBS, [additional volatility is] not essentially a negative point, since more dryness means additional investing revenue," he included.