.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market dryness could possibly boost in the 2nd fifty percent of the year, but he carries out not strongly believe the united state is actually heading in to a recession.Global equities found stinging auctions last week as financiers digested weak economic data away from the U.S. which increased concerns concerning an economical decline on the planet's biggest economy. It also raised questions regarding whether the Federal Get needed to have to be less hawkish with its monetary plan standpoint. The central bank maintained prices on hold in overdue July at a 23-year high.When asked about the overview for the united state economic condition, Ermotti pointed out: "Not essentially an economic crisis, however definitely a stagnation is possible."" The macroeconomic indications are actually unclear enough to talk about economic slumps, and in fact, it is actually most likely early. What we understand is actually that the Fed possesses sufficient ability to action in and also support that, although it's heading to take some time, whatever they perform to become then transmitted in to the economy," the CEO told CNBC on Wednesday after the banking company stated its second-quarter results.UBS counts on that the Federal Book will definitely reduce costs through at least fifty basis factors this year. At the moment, investors are actually divided in between a 50 and a 25 manner aspect cut at the Fed's next appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti mentioned that our company are actually very likely to find much higher market dryness in the 2nd half of the year, partially as a result of the U.S. vote-casting in November." That's one factor, however additionally, if I check out the total geopolitical picture, if I examine the macroeconomic picture, what our company saw in the last number of full weeks in regards to volatility, which, in my perspective, is actually a clear indication of the frailty of some aspects of the unit, u00e2 $ u00a6 one must count on certainly a higher level of dryness," he said.Another unpredictability moving forward is monetary policy as well as whether reserve banks will have to cut fees much more strongly to battle a stagnation in the economic climate. In Switzerland, where UBS is headquartered, the reserve bank has actually reduced costs twice this year. The International Reserve Bank and the Bank of England possess both revealed one slice so far." Recognizing the occasions which are actually theu00c2 unknowns on the horizon like the U.S. governmental political election, our company became obsequious along with an extremely low volatility, now our company are actually changing to a more normal regime," Bruno Verstraete, founder of Lakefield Riches Monitoring told CNBC Wednesday." In the circumstance of UBS, [even more volatility is actually] certainly not always a poor thing, given that even more dryness implies more trading revenue," he included.