.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market volatility can boost in the 2nd half of the year, however he performs certainly not think the U.S. is heading into a recession.Global equities viewed stinging auctions last week as financiers digested unstable financial data out of the USA which brought up fears concerning an economic downturn in the world's most extensive economy. It additionally raised questions about whether the Federal Get required to become a lot less hawkish with its own financial plan viewpoint. The reserve bank kept costs on hold in late July at a 23-year high.When asked them about the outlook for the USA economic situation, Ermotti said: "Certainly not always a recession, however certainly a lag is actually possible."" The macroeconomic indicators are actually not clear adequate to discuss downturns, and actually, it is actually perhaps untimely. What we understand is actually that the Fed has enough ability to come in and also support that, although it's mosting likely to take time, whatever they perform to become after that transferred into the economic climate," the CEO said to CNBC on Wednesday after the bank disclosed its own second-quarter results.UBS expects that the Federal Book are going to cut costs by at the very least 50 manner factors this year. At the moment, traders are actually divided between a fifty and also a 25 basis point cut at the Fed's following conference in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our experts are likely to observe higher market volatility in the 2nd one-half of the year, partially as a result of the united state political election in Nov." That's one element, yet also, if I examine the total geopolitical picture, if I take a look at the macroeconomic picture, what we observed in the last number of full weeks in terms of volatility, which, in my perspective, is a clear indication of the frailty of some factors of the unit, u00e2 $ u00a6 one ought to anticipate certainly a greater level of volatility," he said.Another unpredictability moving forward is actually monetary plan and whether central banks will certainly must cut prices extra aggressively to deal with a slowdown in the economy. In Switzerland, where UBS is headquartered, the central bank has cut prices twice this year. The European Central Bank and also the Banking Company of England have both announced one cut up until now." Recognizing the events which are actually theu00c2 unknowns on the horizon like the united state governmental vote-casting, our company became satisfied along with a really reduced volatility, currently our company are moving to an even more ordinary routine," Bruno Verstraete, owner of Lakefield Riches Control told CNBC Wednesday." In the situation of UBS, [even more volatility is] certainly not automatically a negative point, due to the fact that more volatility implies more investing earnings," he added.