.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti stated Wednesday that market volatility can magnify in the second half of the year, however he does not believe the united state is actually moving in to a recession.Global equities viewed sharp auctions recently as investors digested unstable economical information away from the USA which increased worries regarding an economic downturn in the world's most extensive economic climate. It likewise questioned regarding whether the Federal Reserve needed to become a lot less hawkish with its own financial plan viewpoint. The central bank maintained rates on grip in late July at a 23-year high.When inquired about the overview for the U.S. economic condition, Ermotti mentioned: "Not automatically an economic crisis, however certainly a stagnation is possible."" The macroeconomic clues are not clear adequate to refer to economic crises, and actually, it is actually perhaps untimely. What we understand is actually that the Fed possesses sufficient capacity to action in and also help that, although it is actually visiting take time, whatever they do to be then transferred in to the economic situation," the CEO informed CNBC on Wednesday after the bank reported its second-quarter results.UBS expects that the Federal Book will certainly reduce costs through a minimum of 50 manner factors this year. Currently, traders are actually divided in between a fifty and also a 25 manner point cut at the Fed's next conference in September, according to LSEG data.Speaking to CNBC, Ermotti stated that our team are actually most likely to see greater market volatility in the 2nd half of the year, partly because of the USA political election in Nov." That is actually one element, however also, if I take a look at the overall geopolitical image, if I check out the macroeconomic photo, what our company saw in the final number of weeks in terms of volatility, which, in my perspective, is actually a very clear indicator of the fragility of some components of the device, u00e2 $ u00a6 one should expect absolutely a much higher level of volatility," he said.Another unpredictability moving forward is actually financial plan and also whether central banks will must reduce rates more strongly to deal with a stagnation in the economic condition. In Switzerland, where UBS is headquartered, the reserve bank has actually cut fees two times this year. The European Central Bank as well as the Financial Institution of England possess both declared one slice up until now." Knowing the activities which are theu00c2 unknowns coming up like the USA presidential political election, our experts became satisfied along with an extremely reduced volatility, now our team are actually shifting to an even more usual routine," Bruno Verstraete, creator of Lakefield Riches Management said to CNBC Wednesday." In the situation of UBS, [more volatility is actually] certainly not automatically a negative thing, given that additional volatility means even more trading earnings," he included.