.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 dryness could heighten in the 2nd fifty percent of the year, but he does certainly not feel the USA is moving right into a recession.Global equities observed sharp auctions recently as clients digested weak economical data away from the USA which brought up worries regarding an economical downturn on the planet's largest economic climate. It additionally questioned concerning whether the Federal Reserve needed to be less hawkish along with its monetary plan standpoint. The reserve bank always kept fees on hold in late July at a 23-year high.When inquired about the expectation for the USA economy, Ermotti pointed out: "Certainly not always a downturn, but most definitely a decline is actually achievable."" The macroeconomic red flags are not clear enough to talk about economic slumps, and actually, it is actually most likely premature. What we understand is that the Fed has enough ability to intervene and support that, although it is actually going to take some time, whatever they do to be at that point broadcast in to the economy," the CEO said to CNBC on Wednesday after the bank disclosed its own second-quarter results.UBS counts on that the Federal Reserve will reduce prices through a minimum of fifty manner factors this year. At the moment, traders are divided between a fifty as well as a 25 basis point cut at the Fed's following appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our company are likely to find much higher market dryness in the 2nd fifty percent of the year, somewhat as a result of the united state vote-casting in Nov." That is actually one aspect, yet likewise, if I check out the general geopolitical image, if I check out the macroeconomic image, what our experts viewed in the final couple of full weeks in regards to dryness, which, in my perspective, is a crystal clear indicator of the frailty of some factors of the unit, u00e2 $ u00a6 one should expect certainly a much higher degree of dryness," he said.Another anxiety going forward is monetary policy and also whether reserve banks are going to need to reduce costs a lot more strongly to battle a slowdown in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has actually reduced prices twice this year. The European Central Bank and also the Bank of England possess each introduced one slice so far." Understanding the occasions which are theu00c2 unknowns at hand like the U.S. governmental election, our company came to be satisfied along with an incredibly low dryness, now our experts are actually shifting to an extra typical routine," Bruno Verstraete, founder of Lakefield Wide range Management informed CNBC Wednesday." In the circumstance of UBS, [additional volatility is actually] not always a bad point, since more dryness means additional exchanging earnings," he added.