.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market dryness could possibly intensify in the second half of the year, but he does not feel the USA is actually moving right into a recession.Global equities observed stinging auctions last week as clients digested unstable financial records out of the USA which brought up concerns about an economic recession worldwide's most extensive economic condition. It additionally raised questions about whether the Federal Book required to be a lot less hawkish with its own monetary policy position. The reserve bank kept rates on grip in late July at a 23-year high.When asked them about the overview for the united state economic climate, Ermotti pointed out: "Not essentially a recession, yet absolutely a slowdown is actually feasible."" The macroeconomic clues are unclear adequate to speak about economic crises, and also in fact, it's probably premature. What we know is that the Fed possesses sufficient capability to come in and assistance that, although it is actually visiting take some time, whatever they perform to be after that sent right into the economic condition," the CEO informed CNBC on Wednesday after the banking company stated its second-quarter results.UBS expects that the Federal Book will certainly cut fees by a minimum of fifty basis factors this year. At the moment, traders are actually split between a 50 and a 25 manner point cut at the Fed's following appointment in September, according to LSEG data.Speaking to CNBC, Ermotti said that our team are likely to observe greater market dryness in the second half of the year, partially as a result of the USA vote-casting in November." That is actually one factor, yet likewise, if I consider the total geopolitical picture, if I check out the macroeconomic picture, what our experts viewed in the last couple of weeks in relations to dryness, which, in my point of view, is actually a clear indication of the fragility of some components of the device, u00e2 $ u00a6 one should anticipate absolutely a much higher level of dryness," he said.Another anxiety going forward is actually monetary plan and whether reserve banks will definitely need to cut fees more strongly to combat a downturn in the economic situation. In Switzerland, where UBS is headquartered, the central bank has cut prices two times this year. The International Central Bank and the Banking Company of England possess each revealed one slice until now." Recognizing the events which are theu00c2 unknowns on the horizon like the united state presidential political election, our company became obsequious along with an extremely reduced volatility, now our team are shifting to a much more ordinary regime," Bruno Verstraete, creator of Lakefield Wealth Administration said to CNBC Wednesday." In the context of UBS, [more dryness is actually] certainly not automatically a negative point, since more dryness suggests additional investing income," he added.