.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti stated Wednesday that market volatility could possibly intensify in the second one-half of the year, however he performs not believe the U.S. is actually heading into a recession.Global equities saw stinging sell-offs last week as investors digested unstable economical data out of the united state which reared anxieties regarding a financial slump on earth's largest economic situation. It also questioned concerning whether the Federal Reserve needed to have to become a lot less hawkish along with its financial policy viewpoint. The reserve bank kept costs on hold in late July at a 23-year high.When inquired about the outlook for the U.S. economic situation, Ermotti claimed: "Not essentially a recession, but definitely a decline is feasible."" The macroeconomic indications are unclear enough to speak about economic slumps, and also really, it is actually probably early. What we know is that the Fed has good enough capacity to come in and help that, although it is actually heading to take a while, whatever they perform to become at that point transferred right into the economic situation," the chief executive officer informed CNBC on Wednesday after the financial institution mentioned its second-quarter results.UBS expects that the Federal Get will definitely reduce rates by a minimum of 50 manner factors this year. Presently, traders are divided in between a fifty and also a 25 basis factor cut at the Fed's upcoming conference in September, according to LSEG data.Speaking to CNBC, Ermotti stated that our experts are likely to find higher market volatility in the second half of the year, partly due to the united state vote-casting in Nov." That is actually one variable, but additionally, if I examine the overall geopolitical image, if I take a look at the macroeconomic picture, what we saw in the last number of full weeks in relations to volatility, which, in my perspective, is a very clear indication of the fragility of some factors of the body, u00e2 $ u00a6 one need to expect certainly a much higher degree of volatility," he said.Another uncertainty moving forward is financial plan and also whether reserve banks will definitely need to reduce fees much more boldy to cope with a slowdown in the economic situation. In Switzerland, where UBS is headquartered, the central bank has cut costs twice this year. The European Reserve Bank and also the Financial Institution of England possess both announced one cut so far." Knowing the occasions which are actually theu00c2 unknowns at hand like the U.S. presidential election, our experts ended up being unconcerned with an incredibly low dryness, right now we are actually switching to a more regular regimen," Bruno Verstraete, creator of Lakefield Wide range Management informed CNBC Wednesday." In the context of UBS, [more dryness is actually] certainly not always a bad trait, due to the fact that more dryness indicates additional investing profit," he added.