.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti said Wednesday that market dryness might escalate in the second one-half of the year, but he does not believe the USA is actually moving in to a recession.Global equities saw stinging auctions last week as clients digested weak economical records out of the united state which brought up fears concerning an economic slump on earth's biggest economic condition. It also questioned about whether the Federal Reserve needed to become much less hawkish along with its monetary plan stance. The central bank maintained rates on hold in overdue July at a 23-year high.When asked about the outlook for the USA economy, Ermotti stated: "Not essentially an economic downturn, however definitely a decline is actually feasible."" The macroeconomic signs are not clear sufficient to talk about downturns, as well as really, it's possibly early. What we understand is that the Fed has good enough capability to step in as well as help that, although it's mosting likely to take some time, whatever they perform to be after that sent in to the economic condition," the chief executive officer told CNBC on Wednesday after the financial institution reported its own second-quarter results.UBS expects that the Federal Get will certainly cut prices by at least 50 manner factors this year. At the moment, traders are actually divided between a fifty as well as a 25 basis point cut at the Fed's upcoming appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti mentioned that we are actually probably to view greater market dryness in the 2nd one-half of the year, somewhat because of the USA vote-casting in Nov." That's one variable, however also, if I take a look at the total geopolitical photo, if I check out the macroeconomic picture, what our company viewed in the last couple of full weeks in relations to dryness, which, in my point of view, is actually a very clear indicator of the delicacy of some factors of the system, u00e2 $ u00a6 one ought to anticipate definitely a greater degree of volatility," he said.Another uncertainty going ahead is actually financial plan and whether central banks will certainly need to cut costs more boldy to battle a decline in the economic condition. In Switzerland, where UBS is actually headquartered, the reserve bank has reduced fees twice this year. The International Reserve Bank as well as the Banking Company of England have both declared one cut until now." Knowing the celebrations which are actually theu00c2 unknowns coming up like the USA presidential election, our team ended up being contented with an extremely low dryness, currently our experts are actually shifting to a more usual regime," Bruno Verstraete, owner of Lakefield Riches Administration said to CNBC Wednesday." In the situation of UBS, [additional volatility is actually] certainly not always a bad thing, because even more dryness suggests additional exchanging revenue," he added.