.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market dryness could escalate in the 2nd half of the year, but he performs certainly not strongly believe the united state is heading right into a recession.Global equities found stinging sell-offs last week as clients digested weak economical records away from the USA which raised fears regarding a financial recession worldwide's most extensive economic condition. It also questioned about whether the Federal Get required to be less hawkish with its own financial plan position. The central bank maintained costs on grip in overdue July at a 23-year high.When asked them about the expectation for the united state economy, Ermotti mentioned: "Certainly not necessarily an economic crisis, yet certainly a stagnation is feasible."" The macroeconomic red flags are unclear sufficient to speak about economic crises, and in fact, it is actually possibly untimely. What we know is that the Fed possesses sufficient capability to intervene as well as help that, although it's mosting likely to take some time, whatever they do to become after that transferred in to the economic condition," the CEO informed CNBC on Wednesday after the banking company stated its own second-quarter results.UBS expects that the Federal Get will certainly cut prices through at least 50 manner factors this year. At the moment, traders are actually split in between a 50 and also a 25 manner factor cut at the Fed's following conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our experts are actually probably to see greater market dryness in the second one-half of the year, partly because of the united state vote-casting in Nov." That is actually one variable, yet additionally, if I take a look at the total geopolitical photo, if I check out the macroeconomic image, what we observed in the final couple of weeks in terms of volatility, which, in my point of view, is actually a very clear sign of the fragility of some components of the unit, u00e2 $ u00a6 one must expect absolutely a higher degree of volatility," he said.Another uncertainty going ahead is actually financial policy and whether reserve banks will definitely need to reduce prices even more boldy to deal with a slowdown in the economic situation. In Switzerland, where UBS is actually headquartered, the reserve bank has cut prices twice this year. The European Central Bank as well as the Bank of England possess both announced one cut thus far." Understanding the events which are actually theu00c2 unknowns imminent like the USA presidential political election, we came to be contented with a very reduced dryness, now we are actually shifting to an extra ordinary program," Bruno Verstraete, creator of Lakefield Riches Monitoring said to CNBC Wednesday." In the context of UBS, [more volatility is actually] certainly not always a bad trait, given that even more volatility indicates additional exchanging profit," he added.