Federal Reserve's Attention to Inflation and Capital Formation

The Federal Reserve is closely monitoring the rate of inflation, with some concerns about the core rate being above three. However, much of the inflation is driven by energy costs, which the Federal Reserve cannot control. They are also looking at indicators of capital formation activity, particularly in the equity market, where there has been a recent increase in IPOs like ARM Holdings and Instacart. Inflation and rates of employment remain central factors for the Federal Reserve's decision-making.