.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market dryness could magnify in the 2nd fifty percent of the year, yet he does not strongly believe the U.S. is moving right into a recession.Global equities found stinging sell-offs last week as real estate investors digested unstable economical records out of the USA which raised concerns regarding an economic slump around the world's most extensive economic situation. It also raised questions about whether the Federal Reserve needed to be less hawkish with its own monetary policy standpoint. The central bank always kept fees on hold in overdue July at a 23-year high.When inquired about the expectation for the U.S. economic condition, Ermotti mentioned: "Not always an economic downturn, yet most definitely a lag is actually feasible."" The macroeconomic signs are not clear sufficient to refer to financial crises, and really, it's perhaps untimely. What we know is actually that the Fed has sufficient capability to step in and help that, although it is actually going to take a while, whatever they perform to be after that transmitted right into the economic climate," the chief executive officer told CNBC on Wednesday after the bank reported its second-quarter results.UBS counts on that the Federal Get will certainly cut costs through at the very least fifty manner points this year. Right now, traders are divided in between a 50 as well as a 25 manner point cut at the Fed's following conference in September, according to LSEG data.Speaking to CNBC, Ermotti said that our team are actually probably to view much higher market dryness in the 2nd one-half of the year, partially due to the USA political election in Nov." That is actually one factor, but likewise, if I consider the general geopolitical image, if I take a look at the macroeconomic image, what we saw in the last number of full weeks in relations to volatility, which, in my standpoint, is a very clear indication of the frailty of some components of the system, u00e2 $ u00a6 one need to expect undoubtedly a higher level of volatility," he said.Another uncertainty moving forward is financial plan and whether central banks will need to reduce costs even more strongly to deal with a downturn in the economic climate. In Switzerland, where UBS is actually headquartered, the reserve bank has actually reduced prices twice this year. The International Reserve Bank and also the Bank of England possess each declared one cut thus far." Knowing the celebrations which are actually theu00c2 unknowns imminent like the U.S. governmental vote-casting, our experts became contented along with an incredibly low volatility, currently our experts are actually moving to a more ordinary routine," Bruno Verstraete, creator of Lakefield Wide range Monitoring informed CNBC Wednesday." In the circumstance of UBS, [more dryness is] not necessarily a negative thing, given that even more dryness implies additional exchanging revenue," he incorporated.