.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market volatility might increase in the 2nd fifty percent of the year, but he performs certainly not strongly believe the U.S. is moving right into a recession.Global equities observed sharp sell-offs recently as capitalists digested unstable financial data away from the USA which increased anxieties regarding an economical decline on the planet's biggest economy. It also raised questions about whether the Federal Get needed to be less hawkish along with its monetary policy position. The reserve bank kept prices on grip in overdue July at a 23-year high.When inquired about the outlook for the U.S. economy, Ermotti said: "Not automatically an economic crisis, but most definitely a lag is actually possible."" The macroeconomic signs are unclear adequate to speak about recessions, and also really, it's possibly early. What we know is that the Fed possesses sufficient capacity to intervene and support that, although it's heading to take time, whatever they carry out to become after that broadcast in to the economic climate," the chief executive officer said to CNBC on Wednesday after the bank stated its own second-quarter results.UBS counts on that the Federal Get will certainly cut costs by at least fifty manner points this year. At the moment, investors are actually split in between a fifty and also a 25 basis point cut at the Fed's following appointment in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our team are actually likely to view much higher market volatility in the second half of the year, partially as a result of the U.S. election in Nov." That is actually one aspect, yet additionally, if I consider the general geopolitical image, if I examine the macroeconomic photo, what we observed in the last number of weeks in relations to volatility, which, in my standpoint, is actually a very clear indication of the frailty of some components of the system, u00e2 $ u00a6 one ought to anticipate definitely a higher degree of dryness," he said.Another unpredictability moving forward is financial plan as well as whether reserve banks will have to cut rates more strongly to battle a stagnation in the economy. In Switzerland, where UBS is actually headquartered, the reserve bank has actually cut fees twice this year. The International Central Bank as well as the Bank of England possess both declared one slice so far." Knowing the occasions which are actually theu00c2 unknowns imminent like the U.S. presidential election, our company ended up being obsequious along with an extremely reduced volatility, now our company are actually changing to a more typical regime," Bruno Verstraete, founder of Lakefield Riches Management told CNBC Wednesday." In the circumstance of UBS, [even more volatility is] not always a bad trait, given that additional volatility indicates more exchanging earnings," he included.