.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti said Wednesday that market volatility might escalate in the 2nd fifty percent of the year, yet he carries out not strongly believe the U.S. is actually heading in to a recession.Global equities observed sharp auctions recently as entrepreneurs digested unstable economic records out of the U.S. which brought up worries about an economical recession on earth's biggest economic situation. It likewise raised questions concerning whether the Federal Book needed to be a lot less hawkish with its financial policy posture. The central bank maintained fees on grip in late July at a 23-year high.When asked them about the expectation for the U.S. economic situation, Ermotti said: "Certainly not necessarily a downturn, but definitely a downturn is actually achievable."" The macroeconomic red flags are unclear enough to speak about recessions, and also in fact, it is actually most likely early. What we understand is that the Fed possesses enough capability to intervene and also assistance that, although it's visiting require time, whatever they perform to be at that point transferred into the economic climate," the CEO said to CNBC on Wednesday after the banking company stated its second-quarter results.UBS expects that the Federal Book will cut fees through at least fifty manner aspects this year. At the moment, traders are divided in between a fifty and also a 25 basis point cut at the Fed's following conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti said that we are likely to see much higher market volatility in the second fifty percent of the year, partially as a result of the USA vote-casting in November." That is actually one variable, yet additionally, if I examine the general geopolitical photo, if I check out the macroeconomic picture, what our experts saw in the last couple of full weeks in terms of dryness, which, in my perspective, is actually a very clear sign of the fragility of some factors of the system, u00e2 $ u00a6 one should expect certainly a higher degree of volatility," he said.Another unpredictability going forward is financial policy as well as whether reserve banks will have to cut fees much more strongly to battle a slowdown in the economic situation. In Switzerland, where UBS is headquartered, the central bank has reduced prices two times this year. The International Central Bank as well as the Banking Company of England possess each announced one cut up until now." Knowing the celebrations which are actually theu00c2 unknowns imminent like the U.S. governmental political election, our company came to be complacent with an extremely low volatility, currently our team are actually changing to a more regular routine," Bruno Verstraete, creator of Lakefield Wide range Administration said to CNBC Wednesday." In the context of UBS, [additional volatility is] certainly not essentially a poor factor, considering that more volatility implies more investing profit," he incorporated.