.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market volatility can magnify in the 2nd fifty percent of the year, however he does not feel the U.S. is actually heading into a recession.Global equities observed stinging auctions last week as real estate investors digested unstable economical data out of the U.S. which brought up anxieties concerning a financial downturn worldwide's largest economic situation. It also raised questions regarding whether the Federal Get needed to have to become much less hawkish with its own monetary plan viewpoint. The reserve bank kept fees on hold in late July at a 23-year high.When inquired about the overview for the USA economic situation, Ermotti mentioned: "Not essentially an economic slump, but absolutely a lag is actually feasible."" The macroeconomic clues are actually not clear enough to speak about recessions, and really, it is actually perhaps early. What we understand is actually that the Fed has enough capacity to action in and support that, although it's heading to take some time, whatever they perform to be at that point transmitted right into the economic climate," the chief executive officer informed CNBC on Wednesday after the banking company stated its second-quarter results.UBS anticipates that the Federal Reserve are going to cut rates by at least fifty manner factors this year. Currently, traders are actually split in between a 50 as well as a 25 basis point cut at the Fed's following meeting in September, according to LSEG data.Speaking to CNBC, Ermotti said that our company are actually likely to see higher market volatility in the 2nd one-half of the year, somewhat as a result of the U.S. election in Nov." That's one element, but likewise, if I check out the total geopolitical image, if I consider the macroeconomic image, what our experts observed in the last number of full weeks in relations to dryness, which, in my viewpoint, is actually a crystal clear indicator of the delicacy of some components of the system, u00e2 $ u00a6 one must count on most definitely a higher level of volatility," he said.Another uncertainty going forward is monetary policy and whether reserve banks will have to reduce costs much more aggressively to battle a slowdown in the economic climate. In Switzerland, where UBS is headquartered, the central bank has reduced costs twice this year. The International Central Bank and also the Banking Company of England have each revealed one cut up until now." Understanding the celebrations which are theu00c2 unknowns imminent like the U.S. presidential vote-casting, we became obsequious with an incredibly reduced dryness, currently our experts are actually switching to an even more typical regime," Bruno Verstraete, creator of Lakefield Wide range Control said to CNBC Wednesday." In the context of UBS, [additional volatility is] certainly not essentially a poor trait, given that more dryness indicates more exchanging profit," he added.