.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market dryness could escalate in the 2nd one-half of the year, but he performs not strongly believe the united state is moving right into a recession.Global equities viewed stinging auctions last week as capitalists digested weak economic data out of the united state which reared anxieties concerning an economical slump worldwide's largest economic condition. It also raised questions concerning whether the Federal Reserve required to be less hawkish along with its own monetary plan posture. The central bank always kept rates on hold in late July at a 23-year high.When asked them about the outlook for the USA economic climate, Ermotti stated: "Not necessarily a downturn, but absolutely a decline is actually possible."" The macroeconomic indications are unclear enough to discuss financial crises, as well as in fact, it is actually most likely untimely. What we know is that the Fed has enough capability to come in and also assistance that, although it's mosting likely to require time, whatever they do to be then sent right into the economic climate," the CEO said to CNBC on Wednesday after the financial institution disclosed its second-quarter results.UBS expects that the Federal Get will cut costs by at least fifty basis factors this year. Currently, investors are actually divided between a fifty and also a 25 basis point cut at the Fed's next appointment in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that our experts are actually probably to observe much higher market dryness in the 2nd one-half of the year, partly due to the USA vote-casting in November." That is actually one variable, yet likewise, if I consider the general geopolitical image, if I examine the macroeconomic photo, what we found in the last number of full weeks in relations to dryness, which, in my point of view, is a crystal clear indication of the delicacy of some aspects of the unit, u00e2 $ u00a6 one need to expect certainly a greater degree of volatility," he said.Another anxiety going forward is actually financial plan as well as whether reserve banks will need to cut rates much more aggressively to cope with a slowdown in the economic situation. In Switzerland, where UBS is actually headquartered, the central bank has actually reduced costs twice this year. The International Reserve Bank and also the Bank of England have both introduced one cut so far." Understanding the occasions which are theu00c2 unknowns coming up like the USA governmental election, our company came to be unconcerned with an extremely reduced volatility, now our team are shifting to a more normal routine," Bruno Verstraete, owner of Lakefield Riches Management told CNBC Wednesday." In the situation of UBS, [even more dryness is] not always a bad trait, given that even more dryness suggests additional trading earnings," he added.