.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market volatility could magnify in the second half of the year, but he performs not think the USA is moving in to a recession.Global equities observed stinging auctions recently as financiers digested unstable economic information away from the united state which reared concerns concerning an economic downturn around the world's largest economic situation. It additionally raised questions regarding whether the Federal Reserve needed to become a lot less hawkish along with its monetary policy position. The central bank always kept costs on hold in late July at a 23-year high.When asked about the overview for the USA economic condition, Ermotti pointed out: "Not automatically a downturn, however definitely a stagnation is feasible."" The macroeconomic indicators are unclear adequate to discuss financial crises, and really, it's possibly untimely. What we understand is that the Fed possesses good enough ability to step in and also assistance that, although it is actually visiting take a while, whatever they carry out to become after that sent in to the economic situation," the CEO informed CNBC on Wednesday after the financial institution reported its own second-quarter results.UBS anticipates that the Federal Get will cut rates by at least fifty manner points this year. Right now, investors are actually divided between a fifty as well as a 25 basis point cut at the Fed's upcoming meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti said that our company are actually likely to observe greater market volatility in the second one-half of the year, somewhat due to the U.S. political election in Nov." That's one aspect, yet likewise, if I look at the general geopolitical image, if I look at the macroeconomic image, what our company observed in the final couple of full weeks in regards to volatility, which, in my point of view, is a clear indication of the frailty of some factors of the system, u00e2 $ u00a6 one must expect certainly a higher degree of volatility," he said.Another unpredictability going forward is monetary plan and also whether central banks will need to cut prices a lot more strongly to cope with a stagnation in the economic climate. In Switzerland, where UBS is actually headquartered, the reserve bank has cut rates twice this year. The European Reserve Bank as well as the Bank of England have both declared one slice thus far." Knowing the events which are actually theu00c2 unknowns on the horizon like the united state presidential election, our team ended up being satisfied along with a really low dryness, right now our experts are actually moving to an even more typical regime," Bruno Verstraete, owner of Lakefield Wide range Control said to CNBC Wednesday." In the circumstance of UBS, [even more volatility is] not essentially a negative thing, due to the fact that additional volatility suggests even more investing income," he added.