.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market dryness could magnify in the 2nd half of the year, however he does not think the U.S. is moving into a recession.Global equities viewed sharp sell-offs last week as entrepreneurs digested unstable financial data out of the USA which increased worries concerning an economic slump worldwide's biggest economy. It also questioned concerning whether the Federal Reserve needed to be a lot less hawkish with its financial policy standpoint. The central bank always kept prices on grip in late July at a 23-year high.When asked them about the overview for the U.S. economic climate, Ermotti stated: "Certainly not necessarily an economic downturn, but certainly a slowdown is achievable."" The macroeconomic red flags are actually unclear adequate to speak about economic slumps, and also in fact, it is actually possibly premature. What we know is that the Fed possesses sufficient ability to action in as well as assistance that, although it is actually going to require time, whatever they carry out to be after that sent right into the economic situation," the chief executive officer informed CNBC on Wednesday after the banking company stated its own second-quarter results.UBS counts on that the Federal Book will definitely reduce rates through at least fifty manner aspects this year. Right now, investors are actually divided between a 50 and a 25 basis factor cut at the Fed's next meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti said that our team are probably to find higher market dryness in the 2nd half of the year, partly due to the united state election in Nov." That is actually one variable, yet also, if I look at the total geopolitical image, if I consider the macroeconomic image, what we observed in the final couple of weeks in regards to dryness, which, in my standpoint, is a clear sign of the fragility of some factors of the system, u00e2 $ u00a6 one should count on most definitely a greater level of volatility," he said.Another anxiety going forward is actually monetary policy as well as whether reserve banks will certainly have to reduce rates a lot more aggressively to fight a slowdown in the economic situation. In Switzerland, where UBS is headquartered, the reserve bank has cut costs twice this year. The European Reserve Bank and also the Bank of England have each introduced one cut so far." Recognizing the celebrations which are actually theu00c2 unknowns at hand like the USA governmental vote-casting, our company ended up being contented with a really low dryness, currently our experts are changing to a more typical routine," Bruno Verstraete, owner of Lakefield Wealth Management said to CNBC Wednesday." In the situation of UBS, [additional volatility is actually] certainly not essentially a poor factor, since additional volatility means more trading profit," he incorporated.