.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 volatility can escalate in the second half of the year, however he carries out not think the U.S. is actually moving right into a recession.Global equities viewed sharp auctions recently as investors digested unstable economical records away from the USA which brought up fears about a financial decline around the world's biggest economic situation. It additionally raised questions about whether the Federal Reserve required to be less hawkish with its own financial plan position. The central bank maintained prices on grip in late July at a 23-year high.When inquired about the expectation for the U.S. economic condition, Ermotti pointed out: "Certainly not automatically a recession, however definitely a lag is actually achievable."" The macroeconomic red flags are not clear enough to speak about economic downturns, and also in fact, it's perhaps early. What we understand is actually that the Fed possesses good enough capacity to action in as well as assistance that, although it's going to take a while, whatever they carry out to be after that sent into the economic situation," the chief executive officer said to CNBC on Wednesday after the banking company reported its second-quarter results.UBS counts on that the Federal Book will reduce fees through at the very least fifty manner aspects this year. Right now, traders are divided in between a 50 and also a 25 manner factor cut at the Fed's next conference in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our team are actually most likely to observe much higher market dryness in the 2nd fifty percent of the year, partly because of the U.S. vote-casting in Nov." That's one factor, however likewise, if I take a look at the overall geopolitical image, if I consider the macroeconomic image, what our experts viewed in the final number of full weeks in relations to volatility, which, in my point of view, is actually a very clear sign of the delicacy of some components of the unit, u00e2 $ u00a6 one should anticipate undoubtedly a higher level of volatility," he said.Another unpredictability going forward is actually financial plan and also whether central banks will must cut costs much more boldy to combat a decline in the economic condition. In Switzerland, where UBS is actually headquartered, the reserve bank has actually reduced fees twice this year. The European Central Bank as well as the Banking Company of England have both announced one slice so far." Recognizing the activities which are theu00c2 unknowns on the horizon like the U.S. presidential vote-casting, our experts came to be contented with an extremely low volatility, currently our experts are moving to a more usual regimen," Bruno Verstraete, founder of Lakefield Wealth Administration told CNBC Wednesday." In the situation of UBS, [additional dryness is actually] not always a poor trait, because additional volatility means additional investing income," he included.