.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market dryness might boost in the second one-half of the year, yet he carries out certainly not feel the U.S. is heading in to a recession.Global equities saw stinging sell-offs last week as real estate investors digested weak financial information away from the united state which reared worries concerning an economic decline on earth's largest economic climate. It additionally raised questions concerning whether the Federal Book required to be a lot less hawkish along with its own financial policy posture. The reserve bank always kept prices on hold in overdue July at a 23-year high.When inquired about the overview for the USA economy, Ermotti said: "Certainly not essentially an economic crisis, however most definitely a stagnation is actually feasible."" The macroeconomic clues are actually not clear sufficient to talk about economic slumps, as well as really, it is actually most likely early. What we understand is that the Fed has enough capacity to intervene and also help that, although it's going to take time, whatever they do to be at that point transferred into the economic condition," the chief executive officer said to CNBC on Wednesday after the financial institution disclosed its own second-quarter results.UBS counts on that the Federal Reserve will certainly reduce costs by at least 50 basis factors this year. Presently, traders are split in between a 50 and a 25 manner aspect cut at the Fed's following meeting in September, according to LSEG data.Speaking to CNBC, Ermotti stated that we are most likely to view greater market dryness in the second fifty percent of the year, partly because of the USA political election in November." That's one variable, but also, if I take a look at the total geopolitical photo, if I take a look at the macroeconomic image, what our team observed in the final number of weeks in regards to dryness, which, in my viewpoint, is a clear indication of the frailty of some elements of the unit, u00e2 $ u00a6 one ought to anticipate absolutely a greater level of dryness," he said.Another anxiety going ahead is actually financial plan as well as whether reserve banks will certainly need to reduce costs much more strongly to cope with a downturn in the economic situation. In Switzerland, where UBS is headquartered, the central bank has reduced fees two times this year. The International Central Bank as well as the Bank of England have both introduced one cut thus far." Knowing the activities which are theu00c2 unknowns coming up like the U.S. presidential vote-casting, we became contented with a quite low volatility, right now our experts are actually shifting to an extra ordinary regimen," Bruno Verstraete, owner of Lakefield Wide range Monitoring said to CNBC Wednesday." In the situation of UBS, [more dryness is] not always a bad trait, because even more volatility suggests additional exchanging profit," he included.