.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti stated Wednesday that market volatility might intensify in the 2nd half of the year, yet he carries out certainly not strongly believe the U.S. is actually heading into a recession.Global equities found stinging sell-offs last week as financiers digested unstable financial information away from the U.S. which reared anxieties concerning an economical downturn worldwide's largest economic climate. It additionally raised questions about whether the Federal Get required to become less hawkish with its own monetary plan position. The reserve bank always kept fees on hold in overdue July at a 23-year high.When asked about the overview for the U.S. economic condition, Ermotti claimed: "Not automatically an economic slump, yet undoubtedly a stagnation is achievable."" The macroeconomic indications are not clear sufficient to speak about economic slumps, and also in fact, it's possibly untimely. What we understand is actually that the Fed possesses sufficient capacity to intervene and also help that, although it's going to take a while, whatever they carry out to become then broadcast in to the economic climate," the chief executive officer told CNBC on Wednesday after the financial institution stated its own second-quarter results.UBS counts on that the Federal Book will certainly reduce costs through a minimum of 50 manner factors this year. Right now, investors are actually split in between a fifty as well as a 25 manner point cut at the Fed's next appointment in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that we are very likely to view much higher market volatility in the 2nd one-half of the year, somewhat because of the united state vote-casting in November." That is actually one factor, however likewise, if I look at the general geopolitical picture, if I examine the macroeconomic image, what we saw in the last couple of weeks in terms of volatility, which, in my point of view, is actually a crystal clear sign of the delicacy of some factors of the system, u00e2 $ u00a6 one must expect certainly a greater degree of dryness," he said.Another unpredictability moving forward is monetary plan and also whether reserve banks will certainly have to reduce costs extra aggressively to cope with a decline in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has reduced prices two times this year. The European Central Bank and the Banking Company of England have each revealed one slice up until now." Recognizing the activities which are theu00c2 unknowns on the horizon like the united state governmental vote-casting, our team came to be unconcerned with a really reduced dryness, now our team are actually switching to a more normal regimen," Bruno Verstraete, founder of Lakefield Riches Control informed CNBC Wednesday." In the context of UBS, [even more dryness is actually] not automatically a negative thing, because additional dryness indicates even more trading earnings," he included.