.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market dryness could escalate in the 2nd fifty percent of the year, yet he carries out not strongly believe the USA is actually heading into a recession.Global equities viewed stinging auctions recently as financiers digested weak economical records out of the USA which brought up worries about an economical slump in the world's largest economic climate. It additionally questioned about whether the Federal Get needed to have to become a lot less hawkish along with its own financial policy standpoint. The reserve bank maintained rates on grip in overdue July at a 23-year high.When asked them about the outlook for the USA economic climate, Ermotti claimed: "Certainly not always an economic downturn, but definitely a slowdown is achievable."" The macroeconomic red flags are actually not clear enough to speak about recessions, and also really, it is actually perhaps early. What we know is actually that the Fed possesses sufficient capacity to intervene as well as help that, although it's visiting require time, whatever they carry out to be at that point transmitted right into the economic situation," the CEO told CNBC on Wednesday after the financial institution mentioned its second-quarter results.UBS counts on that the Federal Book are going to cut prices through a minimum of fifty basis aspects this year. Presently, traders are actually split in between a fifty and also a 25 basis point cut at the Fed's upcoming appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our company are actually likely to view higher market dryness in the 2nd half of the year, partially due to the USA vote-casting in November." That's one aspect, but additionally, if I look at the general geopolitical photo, if I check out the macroeconomic photo, what our company observed in the last number of full weeks in relations to dryness, which, in my standpoint, is a clear indicator of the fragility of some components of the system, u00e2 $ u00a6 one need to expect definitely a greater level of dryness," he said.Another unpredictability going forward is actually monetary policy and also whether central banks will have to reduce costs more aggressively to fight a lag in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has actually reduced rates two times this year. The International Central Bank as well as the Banking Company of England possess both declared one cut thus far." Recognizing the occasions which are actually theu00c2 unknowns coming up like the U.S. presidential vote-casting, our team ended up being satisfied with a really reduced volatility, currently our company are shifting to a more normal routine," Bruno Verstraete, founder of Lakefield Wide range Management told CNBC Wednesday." In the context of UBS, [even more dryness is] not automatically a negative factor, due to the fact that more dryness means more trading profit," he incorporated.