.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market dryness could intensify in the second half of the year, but he performs certainly not strongly believe the USA is actually moving in to a recession.Global equities found sharp sell-offs recently as entrepreneurs digested unstable financial records out of the united state which brought up anxieties regarding an economic slump on earth's largest economic condition. It also questioned regarding whether the Federal Get required to become less hawkish along with its own financial policy posture. The central bank always kept rates on hold in overdue July at a 23-year high.When inquired about the overview for the USA economic condition, Ermotti pointed out: "Certainly not essentially an economic downturn, but certainly a decline is actually achievable."" The macroeconomic clues are actually not clear sufficient to speak about economic crises, and really, it's most likely premature. What we know is that the Fed has sufficient ability to action in as well as assistance that, although it is actually heading to take a while, whatever they carry out to be at that point broadcast into the economic climate," the chief executive officer told CNBC on Wednesday after the bank reported its second-quarter results.UBS counts on that the Federal Reserve will certainly cut rates through a minimum of fifty basis aspects this year. Presently, traders are split between a 50 and a 25 manner factor cut at the Fed's next meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that our team are actually probably to observe higher market dryness in the 2nd one-half of the year, partially as a result of the U.S. election in Nov." That is actually one element, yet likewise, if I consider the total geopolitical image, if I consider the macroeconomic image, what our team viewed in the last number of full weeks in terms of volatility, which, in my point of view, is actually a very clear indicator of the fragility of some components of the body, u00e2 $ u00a6 one ought to count on definitely a much higher level of dryness," he said.Another unpredictability moving forward is actually financial plan and whether reserve banks will certainly must cut rates extra boldy to fight a decline in the economic condition. In Switzerland, where UBS is headquartered, the central bank has actually cut fees two times this year. The International Central Bank and also the Financial Institution of England have each announced one cut up until now." Recognizing the occasions which are actually theu00c2 unknowns at hand like the USA presidential election, our team ended up being contented with an extremely low volatility, now we are actually shifting to a more regular routine," Bruno Verstraete, owner of Lakefield Wealth Control said to CNBC Wednesday." In the circumstance of UBS, [even more dryness is] certainly not automatically a negative trait, since more dryness suggests more exchanging earnings," he included.