.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti mentioned Wednesday that market dryness could possibly escalate in the second one-half of the year, but he does certainly not feel the U.S. is actually moving into a recession.Global equities saw sharp sell-offs last week as capitalists digested unstable economical information away from the U.S. which reared concerns regarding an economic downturn around the world's largest economic climate. It additionally raised questions regarding whether the Federal Book required to be less hawkish along with its own monetary plan posture. The central bank maintained prices on grip in late July at a 23-year high.When asked about the overview for the U.S. economy, Ermotti mentioned: "Not essentially a recession, but absolutely a downturn is actually feasible."" The macroeconomic red flags are actually not clear sufficient to speak about recessions, and really, it's perhaps premature. What we know is actually that the Fed possesses enough ability to intervene and help that, although it's mosting likely to require time, whatever they carry out to become then broadcast in to the economic climate," the CEO said to CNBC on Wednesday after the financial institution stated its second-quarter results.UBS counts on that the Federal Get will definitely reduce prices by at least 50 manner points this year. Currently, investors are divided between a fifty and a 25 basis point cut at the Fed's next conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our company are likely to observe higher market dryness in the second half of the year, partially because of the USA political election in November." That's one aspect, but likewise, if I check out the total geopolitical photo, if I look at the macroeconomic picture, what our experts viewed in the final couple of weeks in relations to volatility, which, in my standpoint, is actually a crystal clear indicator of the frailty of some components of the system, u00e2 $ u00a6 one should anticipate most definitely a greater level of dryness," he said.Another uncertainty going forward is monetary plan and whether central banks are going to need to reduce prices more strongly to deal with a lag in the economic climate. In Switzerland, where UBS is actually headquartered, the reserve bank has actually cut fees two times this year. The European Reserve Bank and the Financial Institution of England have both introduced one slice thus far." Recognizing the activities which are theu00c2 unknowns coming up like the USA governmental election, our team came to be contented with a very low volatility, currently our company are actually shifting to a much more typical routine," Bruno Verstraete, founder of Lakefield Wealth Monitoring told CNBC Wednesday." In the situation of UBS, [even more dryness is actually] certainly not essentially a negative factor, considering that more volatility means even more investing earnings," he included.