.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market volatility could escalate in the second one-half of the year, yet he performs certainly not strongly believe the U.S. is actually moving into a recession.Global equities saw sharp sell-offs recently as financiers digested unstable economical records away from the united state which raised concerns regarding an economical decline on the planet's largest economic climate. It additionally questioned concerning whether the Federal Book needed to become less hawkish along with its own monetary plan standpoint. The central bank maintained costs on grip in late July at a 23-year high.When asked about the outlook for the united state economic condition, Ermotti mentioned: "Certainly not always an economic crisis, however absolutely a stagnation is actually achievable."" The macroeconomic signs are actually not clear sufficient to refer to economic slumps, and also really, it's perhaps premature. What we know is actually that the Fed has good enough ability to intervene and assistance that, although it is actually mosting likely to take some time, whatever they do to become then broadcast right into the economic climate," the chief executive officer informed CNBC on Wednesday after the bank stated its own second-quarter results.UBS counts on that the Federal Book will certainly cut fees by at the very least 50 basis factors this year. Presently, investors are divided between a 50 as well as a 25 manner point cut at the Fed's upcoming appointment in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our experts are very likely to find higher market volatility in the second fifty percent of the year, partly due to the U.S. political election in Nov." That's one factor, however likewise, if I check out the total geopolitical image, if I examine the macroeconomic image, what our team viewed in the final couple of full weeks in terms of dryness, which, in my standpoint, is a very clear indication of the frailty of some components of the device, u00e2 $ u00a6 one ought to expect certainly a much higher level of volatility," he said.Another anxiety going ahead is actually financial policy as well as whether reserve banks will definitely have to cut costs even more strongly to fight a stagnation in the economy. In Switzerland, where UBS is actually headquartered, the reserve bank has cut fees twice this year. The European Reserve Bank and also the Financial Institution of England have both declared one slice until now." Recognizing the events which are theu00c2 unknowns coming up like the U.S. presidential vote-casting, our company became unconcerned along with an extremely reduced volatility, currently our company are actually shifting to a more typical routine," Bruno Verstraete, creator of Lakefield Wealth Monitoring told CNBC Wednesday." In the circumstance of UBS, [more dryness is] certainly not automatically a poor thing, because additional volatility means even more trading revenue," he included.