Taken to its logical conclusion, the Fed should never do anything and let the economy run its course. That’s always an alternative as long as “folks” are prepared to endure the longer duration of pain. The current administration seems to be on track to make major changes in the Fed that will significantly constrain its activities so we may be on that path.
From a theoretical perspective, I am 100% on board n excluding capital costs from the measure of inflation. Capital costs vary even within the same region and city depending on who is making the purchase. Capital costs introduce a large amount of noise to the measure of inflation that has to require yet more fancy math to accommodate. As a person studying inflation, I want to know the underlying costs of goods completely separate from the cost of financing their purchase.

If CPI was the sole input in determining how to adjust the Fed Funds rate, its flawed accuracy would become obvious quickly. As things stand, dilution by other measures like employment hide the flaw.