.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market dryness could possibly increase in the 2nd half of the year, yet he does certainly not strongly believe the USA is actually moving in to a recession.Global equities saw stinging sell-offs recently as real estate investors digested unstable economic records out of the united state which increased fears concerning an economic downturn on the planet's most extensive economy. It also questioned about whether the Federal Get required to be a lot less hawkish with its own financial policy posture. The reserve bank always kept costs on hold in overdue July at a 23-year high.When inquired about the overview for the U.S. economic situation, Ermotti said: "Certainly not always an economic downturn, yet most definitely a stagnation is feasible."" The macroeconomic red flags are unclear enough to talk about economic slumps, as well as in fact, it's perhaps early. What we understand is that the Fed has sufficient capability to come in as well as help that, although it's heading to take some time, whatever they perform to be then sent right into the economic climate," the CEO told CNBC on Wednesday after the bank reported its own second-quarter results.UBS expects that the Federal Book will definitely reduce costs by at the very least fifty manner aspects this year. Currently, traders are actually split between a fifty as well as a 25 manner point cut at the Fed's following appointment in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that our team are actually very likely to see higher market dryness in the second one-half of the year, partly because of the USA vote-casting in Nov." That is actually one aspect, however additionally, if I consider the overall geopolitical image, if I look at the macroeconomic image, what we saw in the last number of full weeks in relations to dryness, which, in my standpoint, is a very clear indicator of the delicacy of some factors of the unit, u00e2 $ u00a6 one need to count on certainly a much higher degree of dryness," he said.Another anxiety moving forward is actually monetary policy as well as whether reserve banks will must cut prices even more aggressively to fight a stagnation in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has actually cut fees twice this year. The European Central Bank and also the Banking Company of England have each revealed one slice so far." Knowing the occasions which are actually theu00c2 unknowns at hand like the U.S. presidential vote-casting, our team came to be unconcerned along with a quite reduced dryness, currently our team are switching to a much more usual regimen," Bruno Verstraete, owner of Lakefield Wide range Control told CNBC Wednesday." In the situation of UBS, [more dryness is] certainly not automatically a poor trait, given that more volatility suggests more exchanging revenue," he incorporated.