.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market dryness might boost in the 2nd fifty percent of the year, yet he does not feel the USA is actually moving in to a recession.Global equities saw sharp sell-offs recently as real estate investors digested weak financial information away from the USA which reared worries concerning an economical recession in the world's most extensive economic situation. It additionally questioned concerning whether the Federal Get required to become less hawkish with its monetary policy stance. The reserve bank kept rates on hold in overdue July at a 23-year high.When inquired about the outlook for the united state economic climate, Ermotti pointed out: "Certainly not essentially an economic slump, however most definitely a stagnation is achievable."" The macroeconomic indications are unclear adequate to speak about recessions, as well as in fact, it's most likely early. What we know is that the Fed possesses enough capacity to come in as well as help that, although it is actually visiting take some time, whatever they perform to be then sent right into the economic situation," the chief executive officer said to CNBC on Wednesday after the banking company mentioned its own second-quarter results.UBS anticipates that the Federal Book are going to cut prices by at the very least 50 manner points this year. Right now, investors are actually split between a fifty as well as a 25 basis point cut at the Fed's next meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti mentioned that we are most likely to observe higher market dryness in the 2nd one-half of the year, partly due to the united state vote-casting in November." That is actually one variable, but additionally, if I consider the overall geopolitical image, if I look at the macroeconomic image, what our team viewed in the last number of full weeks in terms of volatility, which, in my viewpoint, is actually a clear indication of the frailty of some aspects of the device, u00e2 $ u00a6 one must anticipate certainly a higher degree of dryness," he said.Another anxiety going ahead is actually monetary policy as well as whether central banks will have to cut costs a lot more strongly to combat a stagnation in the economic condition. In Switzerland, where UBS is headquartered, the central bank has actually cut prices two times this year. The European Central Bank and the Bank of England have each announced one slice so far." Understanding the events which are actually theu00c2 unknowns coming up like the U.S. presidential political election, our experts became satisfied with an incredibly low dryness, currently our company are actually shifting to an extra normal regimen," Bruno Verstraete, creator of Lakefield Wide range Management said to CNBC Wednesday." In the context of UBS, [even more dryness is] certainly not always a poor trait, considering that additional volatility means even more exchanging earnings," he included.