.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti stated Wednesday that market dryness might boost in the 2nd fifty percent of the year, yet he does certainly not think the U.S. is heading in to a recession.Global equities saw sharp auctions recently as financiers digested weak economic information out of the U.S. which reared worries about an economical decline worldwide's largest economy. It likewise questioned about whether the Federal Reserve needed to have to be less hawkish along with its monetary plan standpoint. The reserve bank maintained costs on hold in overdue July at a 23-year high.When asked them about the overview for the U.S. economic condition, Ermotti stated: "Certainly not always an economic downturn, yet undoubtedly a slowdown is feasible."" The macroeconomic clues are not clear adequate to speak about downturns, as well as in fact, it's most likely early. What we know is actually that the Fed possesses sufficient capacity to step in and also support that, although it is actually going to require time, whatever they perform to become at that point broadcast right into the economic climate," the chief executive officer informed CNBC on Wednesday after the bank mentioned its second-quarter results.UBS expects that the Federal Reserve will certainly cut costs through at the very least fifty manner factors this year. At the moment, traders are split in between a fifty and also a 25 basis aspect cut at the Fed's following meeting in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our team are probably to observe higher market dryness in the 2nd fifty percent of the year, somewhat due to the U.S. political election in Nov." That is actually one element, but additionally, if I examine the total geopolitical picture, if I look at the macroeconomic picture, what we viewed in the last couple of full weeks in regards to dryness, which, in my point of view, is actually a crystal clear indicator of the delicacy of some components of the system, u00e2 $ u00a6 one must count on most definitely a greater degree of dryness," he said.Another anxiety moving forward is actually monetary plan as well as whether central banks are going to need to cut costs even more strongly to battle a decline in the economy. In Switzerland, where UBS is actually headquartered, the central bank has actually cut rates two times this year. The International Reserve Bank as well as the Financial Institution of England possess both announced one slice so far." Knowing the occasions which are theu00c2 unknowns imminent like the united state presidential vote-casting, our team became unconcerned along with an extremely low dryness, currently our team are actually switching to a much more usual regime," Bruno Verstraete, creator of Lakefield Wealth Management said to CNBC Wednesday." In the circumstance of UBS, [additional dryness is] not essentially a poor point, because even more volatility suggests more trading profit," he incorporated.