The Federal Reserve announced that it will leave interest rates unchanged in July while Chair Jerome Powell claims that September rate cuts could be on the table at the next FOMC meeting.

Charles Schwab chief global investment strategist and managing director Jeffrey Kleintop joins Morning Brief to discuss the Fed's recent rate decision and what it means for the broader market (^DJI, ^IXIC, ^GSPC) as investors are rotating out of Big Tech.

"The market is pricing in 100% odds of a first cut in September. The problem though with that is that any disappointing economic data may no longer be welcome by the market. There's no upside to the policy outlook and only downside from a weaker economy and labor market. In fact, the economic surprise index is now negative in the US, meaning data is coming in below expectations and there's lots of data between now, of course, and the next Fed meeting on September 18," Kleintop tells Yahoo Finance.

If the Fed does begin to cut rates, Kleintop claims: "We've got a number of rate cuts priced in over the next two years, anywhere from 4 or 5, 6, depending on whether you're looking at the futures or the options. It's a lot."

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This post was written by Nicholas Jacobino