.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market dryness might magnify in the 2nd fifty percent of the year, however he does certainly not believe the USA is actually moving into a recession.Global equities found sharp sell-offs last week as clients digested unstable economical information away from the U.S. which increased concerns concerning a financial downturn worldwide's biggest economy. It also questioned regarding whether the Federal Reserve needed to be less hawkish along with its financial policy position. The central bank kept prices on grip in overdue July at a 23-year high.When inquired about the outlook for the USA economic condition, Ermotti pointed out: "Certainly not necessarily an economic crisis, yet certainly a decline is achievable."" The macroeconomic indications are actually not clear enough to talk about downturns, as well as really, it is actually probably untimely. What we know is that the Fed possesses enough capability to intervene as well as help that, although it is actually visiting take some time, whatever they do to be at that point transmitted in to the economy," the chief executive officer told CNBC on Wednesday after the financial institution reported its own second-quarter results.UBS expects that the Federal Reserve will reduce costs through a minimum of 50 manner aspects this year. Right now, investors are actually split in between a fifty as well as a 25 manner aspect cut at the Fed's following conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our experts are actually likely to observe much higher market dryness in the 2nd fifty percent of the year, partially due to the USA vote-casting in November." That is actually one aspect, but likewise, if I take a look at the general geopolitical photo, if I take a look at the macroeconomic picture, what our team found in the final number of weeks in regards to dryness, which, in my perspective, is a clear indicator of the delicacy of some aspects of the device, u00e2 $ u00a6 one must count on certainly a much higher level of dryness," he said.Another uncertainty going forward is monetary plan and also whether reserve banks will certainly must cut fees more aggressively to combat a decline in the economic condition. In Switzerland, where UBS is actually headquartered, the reserve bank has actually reduced prices twice this year. The European Reserve Bank and also the Banking Company of England possess both revealed one cut thus far." Understanding the activities which are theu00c2 unknowns coming up like the USA presidential election, our company came to be obsequious with an extremely reduced volatility, currently our team are actually changing to a much more usual program," Bruno Verstraete, owner of Lakefield Riches Administration informed CNBC Wednesday." In the situation of UBS, [even more volatility is] certainly not necessarily a negative point, because additional volatility suggests more exchanging earnings," he included.