Longtime Wall Street analyst Craig Moffett told CNBC’s Jim CramerInvestors must not forget that the Federal Reserve can influence the stock market on Monday.

Moffett comments “Mad Money”The policymaking arm at the U.S. central banks will meet for its last two-day meeting on the evening of December 1. Wall Street waits to see if there are any changes made by the Fed regarding its timeline for raising interest rates, given months of rising inflation.

MoffettNathanson’s founding partner and a specialist in the telecom industry, said that 95% of stock value is held at its terminal value by low interest rates. “Don’t be surprised when small changes in interest rate make huge changes in stock price,” he added.

A company’s terminal value is its estimated future value beyond the time that future earnings can be reasonably predicted. It typically falls within a three to five-year window. Moffett analysts use terminal value to help them evaluate stocks and companies.

The Fed’s approach to its benchmark interest rate — which is currently at near-zero levels, where it’s been since March 2020 — “obviously affects the way you think about terminal value,” Moffett said.

He said, “At end of the day the cost of money determines what you will pay to long-term growth.”

Wednesday’s Fed meeting is over. Chairman Jerome Powell will hold a press conference starting at 2:20 p.m. ET. The central bank’s address is expected to accelerate the speedIt will end its bond-buying programme. Wall Street expects that central bankers will increase their consensus projections of interest rate increases next year, starting in 2023.

Moffett’s Monday appearance on Mad Money was the latest news that came earlier in today. his research shop was being acquiredSilicon Valley Bank is the parent company. SVB Financial Group. MoffettNathanson was founded in 2013 and focuses on telecom, technology, and media research.

Moffett called the deal a “giant step forward” for MoffettNathanson. It better positions the firm’s analysts to gain insight into startups that disrupt the established players within the industry they cover.

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