.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market volatility could possibly magnify in the second one-half of the year, however he does certainly not strongly believe the U.S. is moving into a recession.Global equities viewed stinging auctions recently as investors digested unstable economical information out of the U.S. which brought up fears concerning a financial slump around the world's largest economy. It additionally questioned concerning whether the Federal Book required to be much less hawkish with its own financial plan stance. The central bank always kept rates on grip in overdue July at a 23-year high.When inquired about the outlook for the U.S. economic condition, Ermotti mentioned: "Certainly not necessarily a financial crisis, however most definitely a lag is actually feasible."" The macroeconomic indicators are not clear sufficient to discuss economic downturns, and really, it is actually probably untimely. What we understand is actually that the Fed has sufficient ability to intervene and help that, although it's visiting take a while, whatever they perform to become then broadcast into the economic situation," the chief executive officer said to CNBC on Wednesday after the financial institution mentioned its second-quarter results.UBS counts on that the Federal Book will certainly reduce prices by a minimum of fifty manner factors this year. Right now, traders are actually split between a 50 and a 25 manner point cut at the Fed's upcoming meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our team are likely to see much higher market volatility in the 2nd one-half of the year, partly as a result of the U.S. political election in November." That is actually one factor, yet additionally, if I examine the general geopolitical photo, if I look at the macroeconomic photo, what our team saw in the last number of weeks in terms of dryness, which, in my point of view, is actually a very clear sign of the fragility of some components of the system, u00e2 $ u00a6 one should count on certainly a higher degree of volatility," he said.Another anxiety going ahead is monetary plan and also whether reserve banks will definitely must reduce prices extra strongly to battle a lag in the economic condition. In Switzerland, where UBS is actually headquartered, the central bank has actually cut costs two times this year. The European Reserve Bank and the Banking Company of England possess each revealed one slice up until now." Knowing the occasions which are theu00c2 unknowns on the horizon like the U.S. presidential political election, our experts came to be unconcerned with a very reduced dryness, now our team are actually shifting to a more usual regimen," Bruno Verstraete, founder of Lakefield Riches Management said to CNBC Wednesday." In the situation of UBS, [even more dryness is] certainly not necessarily a negative factor, because additional volatility suggests more investing income," he added.