.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market volatility can boost in the second one-half of the year, however he performs certainly not strongly believe the USA is heading right into a recession.Global equities viewed sharp sell-offs last week as investors digested weak economic data out of the united state which brought up anxieties regarding an economic decline on earth's biggest economic condition. It also raised questions regarding whether the Federal Reserve needed to have to become less hawkish along with its financial plan standpoint. The reserve bank maintained costs on hold in late July at a 23-year high.When inquired about the expectation for the U.S. economic situation, Ermotti pointed out: "Not always an economic slump, yet certainly a slowdown is achievable."" The macroeconomic indications are not clear sufficient to speak about downturns, as well as actually, it's most likely early. What we know is actually that the Fed has good enough capacity to come in as well as assistance that, although it's heading to take time, whatever they carry out to become then transmitted in to the economic condition," the chief executive officer said to CNBC on Wednesday after the bank disclosed its second-quarter results.UBS expects that the Federal Get will cut fees by at the very least 50 manner points this year. At the moment, traders are actually split in between a 50 and a 25 manner factor cut at the Fed's next conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti said that our team are actually likely to view much higher market volatility in the 2nd one-half of the year, somewhat due to the USA election in November." That's one aspect, yet additionally, if I consider the general geopolitical image, if I consider the macroeconomic photo, what we found in the final number of weeks in terms of volatility, which, in my viewpoint, is actually a very clear sign of the frailty of some components of the system, u00e2 $ u00a6 one should count on most definitely a greater level of dryness," he said.Another anxiety moving forward is actually financial policy and also whether central banks will definitely have to cut costs extra aggressively to battle a downturn in the economy. In Switzerland, where UBS is headquartered, the reserve bank has actually cut fees twice this year. The International Central Bank and also the Bank of England have both revealed one slice thus far." Recognizing the events which are actually theu00c2 unknowns imminent like the united state governmental vote-casting, we became satisfied with an incredibly low volatility, now we are actually changing to an extra normal regimen," Bruno Verstraete, creator of Lakefield Wide range Control told CNBC Wednesday." In the circumstance of UBS, [even more volatility is actually] not essentially a negative thing, since additional volatility means more exchanging earnings," he added.