.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market dryness can magnify in the second half of the year, yet he performs certainly not believe the USA is actually moving in to a recession.Global equities found stinging sell-offs last week as entrepreneurs digested unstable economical records out of the U.S. which reared worries about a financial recession around the world's most extensive economic situation. It also raised questions about whether the Federal Reserve needed to have to become much less hawkish with its financial policy viewpoint. The central bank always kept rates on hold in overdue July at a 23-year high.When asked about the outlook for the united state economic condition, Ermotti said: "Certainly not automatically a downturn, but definitely a stagnation is actually possible."" The macroeconomic red flags are actually unclear enough to discuss recessions, as well as really, it is actually probably premature. What we understand is actually that the Fed has enough ability to intervene as well as help that, although it's going to take a while, whatever they perform to be after that broadcast right into the economy," the CEO informed CNBC on Wednesday after the financial institution disclosed its second-quarter results.UBS counts on that the Federal Book will certainly reduce rates by at the very least fifty basis points this year. Right now, traders are actually split between a 50 as well as a 25 basis point cut at the Fed's next meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti mentioned that our company are actually likely to view higher market dryness in the second half of the year, partially because of the U.S. political election in Nov." That's one variable, but additionally, if I examine the general geopolitical image, if I check out the macroeconomic photo, what our company observed in the last couple of full weeks in terms of dryness, which, in my point of view, is a crystal clear indicator of the frailty of some elements of the device, u00e2 $ u00a6 one must count on certainly a greater degree of dryness," he said.Another uncertainty going ahead is monetary policy as well as whether reserve banks are going to have to reduce fees extra boldy to fight a stagnation in the economic climate. In Switzerland, where UBS is actually headquartered, the reserve bank has actually reduced costs two times this year. The European Central Bank as well as the Banking Company of England have each announced one slice up until now." Recognizing the events which are theu00c2 unknowns on the horizon like the USA presidential vote-casting, our experts came to be contented along with a quite low dryness, right now we are actually shifting to a more normal program," Bruno Verstraete, founder of Lakefield Riches Control said to CNBC Wednesday." In the context of UBS, [even more volatility is] not essentially a bad trait, since even more volatility implies additional investing profit," he included.