.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market volatility can heighten in the second one-half of the year, but he carries out not think the united state is heading right into a recession.Global equities viewed stinging sell-offs last week as financiers digested weak economic records out of the U.S. which increased concerns regarding an economical slump worldwide's most extensive economic situation. It likewise questioned regarding whether the Federal Reserve needed to have to become less hawkish along with its monetary plan standpoint. The central bank maintained fees on hold in late July at a 23-year high.When asked about the expectation for the USA economic climate, Ermotti stated: "Not necessarily a downturn, but absolutely a stagnation is actually possible."" The macroeconomic indicators are actually not clear sufficient to discuss economic slumps, and also in fact, it's perhaps early. What we know is actually that the Fed possesses good enough capability to action in and also assistance that, although it's mosting likely to take time, whatever they perform to become then transmitted right into the economic condition," the CEO informed CNBC on Wednesday after the bank stated its second-quarter results.UBS counts on that the Federal Reserve are going to cut fees through a minimum of 50 basis factors this year. Right now, traders are actually split between a 50 and also 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 company are likely to see higher market volatility in the second one-half of the year, partly as a result of the united state political election in November." That is actually one factor, but likewise, if I examine the total geopolitical image, if I take a look at the macroeconomic photo, what we found in the last number of full weeks in terms of volatility, which, in my viewpoint, is actually a crystal clear indicator of the fragility of some components of the unit, u00e2 $ u00a6 one ought to anticipate undoubtedly a greater level of volatility," he said.Another unpredictability going forward is financial plan and also whether reserve banks will must reduce rates much more aggressively to cope with a lag in the economic condition. In Switzerland, where UBS is actually headquartered, the central bank has reduced rates twice this year. The International Central Bank and the Banking Company of England possess both introduced one slice thus far." Knowing the events which are actually theu00c2 unknowns coming up like the USA governmental election, our experts ended up being obsequious with an extremely reduced volatility, now our experts are actually changing to a more usual routine," Bruno Verstraete, creator of Lakefield Riches Control informed CNBC Wednesday." In the situation of UBS, [even more volatility is actually] certainly not necessarily a bad factor, considering that even more dryness implies additional exchanging income," he incorporated.