.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market volatility might increase in the 2nd half of the year, but he does certainly not feel the united state is actually heading right into a recession.Global equities observed sharp auctions recently as investors digested unstable economical information away from the united state which increased fears regarding an economic decline on the planet's largest economic climate. It also questioned about whether the Federal Get needed to have to become less hawkish along with its own monetary policy standpoint. The reserve bank kept rates on hold in late July at a 23-year high.When asked them about the overview for the united state economic condition, Ermotti claimed: "Not necessarily an economic slump, however most definitely a stagnation is achievable."" The macroeconomic red flags are actually not clear adequate to discuss recessions, and also really, it's perhaps premature. What we understand is actually that the Fed has enough capacity to action in and assistance that, although it is actually visiting require time, whatever they carry out to be then transferred into the economic condition," the chief executive officer told CNBC on Wednesday after the banking company stated its second-quarter results.UBS anticipates that the Federal Reserve are going to cut fees through at the very least 50 basis factors this year. At the moment, traders are actually split in between a fifty as well as a 25 manner factor cut at the Fed's upcoming conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our company are actually most likely to observe greater market dryness in the second one-half of the year, somewhat as a result of the U.S. election in Nov." That's one aspect, however also, if I check out the overall geopolitical picture, if I examine the macroeconomic picture, what our company saw in the final couple of full weeks in relations to dryness, which, in my point of view, is a very clear indication of the delicacy of some components of the system, u00e2 $ u00a6 one should anticipate undoubtedly a higher level of dryness," he said.Another anxiety going forward is financial policy and whether reserve banks will must cut rates a lot more boldy to deal with a stagnation in the economy. In Switzerland, where UBS is headquartered, the reserve bank has actually cut prices two times this year. The European Reserve Bank and the Banking Company of England have both announced one cut so far." Recognizing the events which are theu00c2 unknowns on the horizon like the united state presidential vote-casting, our experts ended up being complacent along with a quite reduced volatility, right now our company are actually moving to an extra ordinary routine," Bruno Verstraete, creator of Lakefield Wealth Control said to CNBC Wednesday." In the situation of UBS, [even more volatility is] certainly not necessarily a negative point, considering that more volatility indicates more exchanging earnings," he included.