.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti stated Wednesday that market volatility could possibly escalate in the second one-half of the year, but he carries out certainly not believe the U.S. is actually moving into a recession.Global equities observed stinging auctions last week as entrepreneurs digested unstable financial data out of the united state which brought up fears about an economical recession around the world's largest economic situation. It additionally raised questions concerning whether the Federal Book needed to be much less hawkish with its own financial plan viewpoint. The reserve bank always kept rates on hold in late July at a 23-year high.When asked about the outlook for the U.S. economic climate, Ermotti said: "Not essentially a financial crisis, but certainly a lag is achievable."" The macroeconomic signs are actually unclear sufficient to refer to economic slumps, and in fact, it's perhaps early. What we understand is actually that the Fed possesses enough capacity to intervene and assistance that, although it's visiting take time, whatever they perform to become then transferred in to the economic situation," the chief executive officer said to CNBC on Wednesday after the banking company mentioned its own second-quarter results.UBS anticipates that the Federal Reserve will definitely reduce costs through at least fifty manner aspects this year. Presently, investors are divided in between a 50 and a 25 basis aspect cut at the Fed's upcoming appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our team are actually likely to see much higher market volatility in the 2nd half of the year, somewhat due to the USA election in Nov." That's one factor, however also, if I take a look at the general geopolitical photo, if I look at the macroeconomic picture, what our company observed in the last couple of weeks in terms of volatility, which, in my perspective, is actually a very clear indication of the fragility of some elements of the unit, u00e2 $ u00a6 one must anticipate definitely a higher level of volatility," he said.Another anxiety going ahead is actually financial policy and also whether reserve banks will certainly need to cut rates more strongly to battle a decline in the economy. In Switzerland, where UBS is actually headquartered, the central bank has cut fees two times this year. The International Reserve Bank and the Financial Institution of England have both introduced one slice until now." Knowing the activities which are theu00c2 unknowns imminent like the USA presidential political election, our experts became complacent along with an incredibly low volatility, now we are moving to a more regular routine," Bruno Verstraete, creator of Lakefield Wealth Monitoring informed CNBC Wednesday." In the circumstance of UBS, [additional volatility is] not always a poor factor, because additional volatility means more exchanging revenue," he incorporated.