.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market volatility could magnify in the 2nd one-half of the year, however he performs not strongly believe the U.S. is moving in to a recession.Global equities saw sharp sell-offs recently as capitalists digested weak economical data away from the USA which increased worries about a financial decline on earth's most extensive economic condition. It also questioned concerning whether the Federal Get required to be a lot less hawkish with its own monetary policy posture. The reserve bank maintained rates on hold in overdue July at a 23-year high.When inquired about the expectation for the united state economy, Ermotti mentioned: "Not essentially an economic crisis, but absolutely a downturn is achievable."" The macroeconomic signs are actually not clear enough to talk about financial crises, and also actually, it's possibly early. What we know is that the Fed has good enough ability to intervene and also help that, although it is actually mosting likely to take time, whatever they carry out to become after that transmitted right into the economic situation," the CEO said to CNBC on Wednesday after the financial institution stated its own second-quarter results.UBS anticipates that the Federal Get are going to reduce prices by a minimum of 50 manner aspects this year. Presently, investors are actually split in between a fifty as well as a 25 basis factor cut at the Fed's next meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our experts are most likely to observe much higher market volatility in the second half of the year, partly as a result of the U.S. political election in Nov." That is actually one aspect, yet also, if I look at the general geopolitical photo, if I look at the macroeconomic photo, what our experts observed in the final couple of full weeks in regards to volatility, which, in my standpoint, is actually a clear indication of the delicacy of some elements of the body, u00e2 $ u00a6 one must anticipate certainly a much higher level of volatility," he said.Another uncertainty going ahead is monetary plan and also whether central banks will have to reduce prices more strongly to battle a downturn in the economic situation. In Switzerland, where UBS is headquartered, the central bank has reduced prices twice this year. The International Reserve Bank and also the Banking Company of England have each declared one cut thus far." Understanding the occasions which are theu00c2 unknowns imminent like the united state presidential election, our team ended up being unconcerned along with a really reduced volatility, right now we are switching to an even more ordinary regimen," Bruno Verstraete, founder of Lakefield Wealth Monitoring informed CNBC Wednesday." In the situation of UBS, [additional volatility is actually] not necessarily a bad point, because additional dryness indicates more investing earnings," he incorporated.