.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti stated Wednesday that market volatility could magnify in the 2nd one-half of the year, yet he carries out not strongly believe the U.S. is actually moving into a recession.Global equities saw stinging sell-offs recently as clients digested weak economical data out of the U.S. which brought up concerns regarding a financial slump on earth's largest economic climate. It likewise questioned regarding whether the Federal Reserve needed to become less hawkish along with its own financial plan standpoint. The central bank always kept rates on hold in late July at a 23-year high.When asked them about the outlook for the united state economy, Ermotti mentioned: "Certainly not essentially a downturn, yet absolutely a lag is possible."" The macroeconomic red flags are actually not clear sufficient to discuss economic crises, as well as really, it's most likely premature. What we understand is that the Fed possesses enough capacity to intervene and assistance that, although it's heading to require time, whatever they perform to become then transferred in to the economic climate," the CEO told CNBC on Wednesday after the banking company stated its second-quarter results.UBS anticipates that the Federal Get will definitely cut fees by a minimum of 50 basis points this year. Currently, investors are actually split in between a 50 as well as a 25 manner point cut at the Fed's next appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our company are likely to observe greater market volatility in the second one-half of the year, partially due to the U.S. political election in November." That's one aspect, yet likewise, if I consider the general geopolitical picture, if I look at the macroeconomic image, what our team found in the final couple of full weeks in regards to volatility, which, in my viewpoint, is a clear sign of the frailty of some aspects of the unit, u00e2 $ u00a6 one should anticipate most definitely a much higher degree of volatility," he said.Another anxiety going forward is monetary policy and also whether central banks are going to need to cut costs a lot more strongly to battle a decline in the economy. In Switzerland, where UBS is actually headquartered, the reserve bank has cut fees two times this year. The European Reserve Bank and the Financial Institution of England possess each revealed one slice thus far." Understanding the celebrations which are actually theu00c2 unknowns at hand like the USA presidential political election, our company came to be unconcerned along with a really reduced volatility, currently our company are moving to an extra regular regimen," Bruno Verstraete, creator of Lakefield Riches Management said to CNBC Wednesday." In the situation of UBS, [even more dryness is] certainly not always a bad factor, because more volatility implies even more exchanging revenue," he incorporated.