.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti stated Wednesday that market dryness could possibly escalate in the second fifty percent of the year, however he carries out not feel the united state is actually moving into a recession.Global equities observed sharp sell-offs last week as clients digested weak economic information away from the USA which raised concerns regarding a financial slump on the planet's biggest economic climate. It also questioned concerning whether the Federal Book needed to have to be less hawkish along with its financial policy stance. The reserve bank kept costs on grip in overdue July at a 23-year high.When asked them about the overview for the USA economic situation, Ermotti stated: "Certainly not always a downturn, yet certainly a downturn is actually feasible."" The macroeconomic red flags are actually not clear adequate to discuss recessions, and in fact, it's possibly early. What we understand is that the Fed has enough capability to come in and also assistance that, although it is actually mosting likely to require time, whatever they perform to be after that broadcast in to the economy," the CEO said to CNBC on Wednesday after the banking company mentioned its own second-quarter results.UBS anticipates that the Federal Book are going to reduce fees through a minimum of 50 manner points this year. Right now, investors are actually divided in between a 50 and a 25 manner point cut at the Fed's following appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti said that we are actually very likely to see higher market dryness in the second half of the year, partly due to the united state political election in Nov." That is actually one aspect, yet also, if I consider the overall geopolitical photo, if I look at the macroeconomic image, what we observed in the final couple of full weeks in terms of dryness, which, in my viewpoint, is a crystal clear indication of the fragility of some components of the unit, u00e2 $ u00a6 one must expect certainly a greater degree of dryness," he said.Another anxiety going forward is actually financial plan and also whether central banks will certainly must cut prices much more strongly to cope with a downturn in the economic condition. In Switzerland, where UBS is headquartered, the central bank has actually reduced costs two times this year. The European Central Bank and also the Financial Institution of England possess each announced one slice so far." Understanding the activities which are theu00c2 unknowns at hand like the USA governmental political election, our team ended up being obsequious with an extremely low volatility, right now we are shifting to a much more usual regimen," Bruno Verstraete, creator of Lakefield Wealth Monitoring said to CNBC Wednesday." In the circumstance of UBS, [more dryness is] certainly not always a negative trait, because additional volatility implies additional trading profit," he added.