.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market dryness could possibly intensify in the 2nd half of the year, yet he does not believe the U.S. is heading right into a recession.Global equities viewed sharp auctions last week as entrepreneurs digested weak financial records out of the U.S. which increased fears regarding a financial downturn around the world's largest economic condition. It likewise raised questions concerning whether the Federal Reserve needed to have to be less hawkish with its own financial policy stance. The central bank maintained costs on grip in overdue July at a 23-year high.When asked them about the outlook for the U.S. economy, Ermotti said: "Not always a recession, but certainly a stagnation is possible."" The macroeconomic clues are unclear adequate to speak about financial crises, and actually, it's most likely untimely. What we understand is that the Fed has enough capacity to intervene and also help that, although it's mosting likely to take a while, whatever they do to become after that broadcast right into the economy," the chief executive officer told CNBC on Wednesday after the financial institution stated its own second-quarter results.UBS expects that the Federal Get are going to cut prices through at least 50 basis factors this year. Currently, investors are actually divided in between a 50 and also a 25 basis point cut at the Fed's next appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that our company are very likely to view much higher market dryness in the 2nd one-half of the year, partly because of the USA vote-casting in November." That's one aspect, yet additionally, if I consider the general geopolitical photo, if I take a look at the macroeconomic image, what our experts observed in the last couple of full weeks in relations to dryness, which, in my point of view, is actually a very clear sign of the fragility of some components of the unit, u00e2 $ u00a6 one should count on undoubtedly a greater degree of dryness," he said.Another unpredictability moving forward is actually monetary policy and also whether reserve banks will have to cut costs extra boldy to cope with a stagnation in the economy. In Switzerland, where UBS is headquartered, the central bank has actually reduced costs twice this year. The European Central Bank and the Banking Company of England have each introduced one slice up until now." Recognizing the events which are theu00c2 unknowns on the horizon like the U.S. governmental political election, our company came to be unconcerned with a quite low volatility, now our company are actually switching to an extra usual program," Bruno Verstraete, creator of Lakefield Riches Administration told CNBC Wednesday." In the situation of UBS, [more dryness is] not essentially a poor point, considering that additional volatility means even more trading income," he included.