.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti mentioned Wednesday that market volatility could possibly magnify in the second one-half of the year, yet he does certainly not think the USA is heading right into a recession.Global equities found sharp auctions last week as investors digested unstable economic information away from the USA which brought up anxieties concerning an economical slump around the world's most extensive economic condition. It additionally questioned regarding whether the Federal Reserve needed to have to become much less hawkish with its own financial plan position. The central bank kept costs on grip in overdue July at a 23-year high.When inquired about the outlook for the united state economy, Ermotti stated: "Not necessarily an economic downturn, yet absolutely a lag is actually feasible."" The macroeconomic indicators are not clear sufficient to talk about economic crises, and also really, it's perhaps early. What we understand is actually that the Fed has sufficient capability to intervene and help that, although it is actually visiting take a while, whatever they do to be after that transferred right into the economy," the chief executive officer said to CNBC on Wednesday after the banking company stated its second-quarter results.UBS counts on that the Federal Reserve will certainly reduce rates through at least 50 basis points this year. At the moment, investors are actually split in between a 50 as well as a 25 manner point cut at the Fed's upcoming appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our experts are very likely to view much higher market volatility in the 2nd half of the year, partly as a result of the united state political election in Nov." That is actually one aspect, but additionally, if I check out the overall geopolitical picture, if I consider the macroeconomic photo, what we viewed in the final couple of full weeks in relations to dryness, which, in my viewpoint, is a clear indicator of the fragility of some aspects of the system, u00e2 $ u00a6 one should expect definitely a greater degree of volatility," he said.Another uncertainty moving forward is monetary plan and whether reserve banks will certainly have to reduce prices much more aggressively to battle a lag in the economy. In Switzerland, where UBS is headquartered, the central bank has reduced prices two times this year. The International Central Bank as well as the Bank of England have both declared one slice so far." Understanding the celebrations which are actually theu00c2 unknowns on the horizon like the U.S. presidential political election, our team became satisfied along with a very low volatility, currently our experts are shifting to an extra regular routine," Bruno Verstraete, founder of Lakefield Wealth Control told CNBC Wednesday." In the circumstance of UBS, [even more volatility is] certainly not always a bad thing, due to the fact that even more volatility suggests even more trading profit," he included.