.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market volatility can intensify in the second half of the year, yet he carries out certainly not strongly believe the U.S. is moving in to a recession.Global equities found sharp auctions last week as capitalists digested unstable economic data out of the united state which increased fears about an economical recession worldwide's largest economic condition. It likewise raised questions about whether the Federal Book needed to be much less hawkish along with its own financial policy position. The reserve bank kept rates on grip in overdue July at a 23-year high.When asked them about the expectation for the U.S. economy, Ermotti pointed out: "Certainly not necessarily an economic slump, yet definitely a lag is actually achievable."" The macroeconomic indicators are not clear enough to discuss economic downturns, as well as actually, it is actually possibly early. What we know is actually that the Fed possesses sufficient capability to step in and assistance that, although it is actually heading to take time, whatever they perform to become then transferred into the economic condition," the CEO said to CNBC on Wednesday after the banking company mentioned its own second-quarter results.UBS counts on that the Federal Book will reduce fees by a minimum of 50 basis aspects this year. At the moment, traders are split in between a 50 and a 25 manner factor cut at the Fed's upcoming conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti mentioned that our team are actually most likely to find higher market volatility in the second fifty percent of the year, partly due to the united state political election in November." That's one element, but likewise, if I examine the general geopolitical photo, if I examine the macroeconomic image, what our team observed in the final couple of weeks in terms of volatility, which, in my standpoint, is actually a crystal clear indicator of the frailty of some aspects of the unit, u00e2 $ u00a6 one need to expect certainly a greater degree of volatility," he said.Another uncertainty moving forward is actually monetary policy as well as whether central banks will must reduce costs more strongly to combat a downturn in the economic situation. In Switzerland, where UBS is actually headquartered, the reserve bank has actually cut rates twice this year. The International Central Bank and the Financial Institution of England possess each declared one slice up until now." Recognizing the activities which are theu00c2 unknowns imminent like the united state governmental election, our experts ended up being obsequious along with an incredibly reduced dryness, right now our company are actually switching to a more typical program," Bruno Verstraete, creator of Lakefield Wide range Control said to CNBC Wednesday." In the circumstance of UBS, [additional dryness is] certainly not automatically a negative factor, because additional volatility indicates even more investing revenue," he added.