.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti stated Wednesday that market dryness can increase in the second fifty percent of the year, but he performs certainly not feel the U.S. is heading right into a recession.Global equities found stinging sell-offs recently as capitalists digested weak economical information out of the USA which raised fears concerning an economical slump on the planet's largest economy. It also raised questions concerning whether the Federal Get required to be less hawkish with its own monetary policy stance. The reserve bank kept rates on grip in overdue July at a 23-year high.When asked about the overview for the USA economic climate, Ermotti stated: "Certainly not always a recession, however certainly a decline is possible."" The macroeconomic indications are actually unclear adequate to discuss financial crises, and in fact, it's probably premature. What we understand is that the Fed has enough capacity to come in as well as help that, although it is actually heading to take some time, whatever they perform to be after that broadcast into the economy," the CEO said to CNBC on Wednesday after the financial institution reported its own second-quarter results.UBS expects that the Federal Book will cut fees through at least 50 manner aspects this year. At the moment, traders are divided in between a fifty and also a 25 basis factor cut at the Fed's upcoming meeting in September, according to LSEG data.Speaking to CNBC, Ermotti pointed out that our company are likely to view higher market dryness in the second half of the year, partially as a result of the USA vote-casting in November." That is actually one aspect, but likewise, if I take a look at the general geopolitical image, if I take a look at the macroeconomic picture, what our experts found in the final couple of weeks in regards to volatility, which, in my standpoint, is a clear indicator of the frailty of some factors of the device, u00e2 $ u00a6 one ought to expect undoubtedly a much higher degree of volatility," he said.Another anxiety going forward is financial policy and also whether reserve banks will need to cut prices extra aggressively to deal with a downturn in the economic condition. In Switzerland, where UBS is headquartered, the reserve bank has actually cut fees twice this year. The European Central Bank as well as the Financial Institution of England possess both revealed one cut up until now." Knowing the activities which are actually theu00c2 unknowns on the horizon like the U.S. presidential election, we came to be contented along with an incredibly reduced dryness, right now our company are shifting to a more regular regimen," Bruno Verstraete, founder of Lakefield Riches Administration told CNBC Wednesday." In the context of UBS, [additional dryness is] certainly not necessarily a bad thing, due to the fact that additional dryness means more exchanging revenue," he incorporated.