.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market dryness could possibly intensify in the second fifty percent of the year, however he carries out not believe the USA is moving in to a recession.Global equities found stinging sell-offs recently as real estate investors digested unstable economic information out of the USA which brought up anxieties regarding a financial decline on earth's most extensive economy. It likewise raised questions about whether the Federal Get needed to have to be a lot less hawkish with its financial plan posture. The central bank kept costs on grip in overdue July at a 23-year high.When inquired about the outlook for the U.S. economy, Ermotti pointed out: "Not always a recession, yet certainly a decline is actually achievable."" The macroeconomic clues are not clear sufficient to speak about economic slumps, and actually, it's probably early. What we know is actually that the Fed has enough capability to step in and also assistance that, although it is actually visiting take time, whatever they perform to be at that point transmitted into the economic climate," the CEO said to CNBC on Wednesday after the banking company mentioned its second-quarter results.UBS anticipates that the Federal Book will definitely cut fees by at the very least 50 basis aspects this year. Right now, traders are divided between a 50 and a 25 manner point cut at the Fed's next appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our team are probably to see greater market dryness in the second fifty percent of the year, partially due to the USA election in Nov." That's one factor, but likewise, if I consider the overall geopolitical picture, if I look at the macroeconomic photo, what our experts saw in the last couple of weeks in relations to dryness, which, in my viewpoint, is a very clear sign of the delicacy of some elements of the unit, u00e2 $ u00a6 one need to count on most definitely a greater level of dryness," he said.Another uncertainty moving forward is monetary policy as well as whether reserve banks will need to cut prices a lot more aggressively to deal with a downturn in the economic climate. In Switzerland, where UBS is actually headquartered, the reserve bank has cut prices two times this year. The European Central Bank and also the Financial Institution of England possess both announced one cut thus far." Understanding the events which are actually theu00c2 unknowns at hand like the USA presidential vote-casting, our company became unconcerned with a really reduced dryness, currently our experts are switching to a more ordinary routine," Bruno Verstraete, owner of Lakefield Wealth Management informed CNBC Wednesday." In the context of UBS, [more volatility is actually] not necessarily a negative thing, since even more dryness suggests even more trading revenue," he included.