Oil was $120 in May and people were flipping out then. Companies that thought they were protecting themselves from $200 oil bought in the $140s. If it's $120 now, that's 65% higher than it was last year at this time. It will actually take months for things to work themselves out. The Fed left rates where they are, thinking that the worst threats of inflation and slow growth may actually have ebbed. Their statement that “the upside risks to inflation are also of significant concern to the Committee” is actually quite weaker than the one released at the prior meeting. “Concern” doesn't mean you're apt to do anything.

How is the manufacturing sector doing? Commodities markets are doing very well, so well that anyone who says print is a commodity should be banished to a loony bin. We wish print were a commodity like the top performers in this list of manufacturing industries from the Commerce Department with their performance compared to the first six months of 2007.

Petroleum and coal products +39.4%
Nondurable goods industries +12.3%|
Primary metals +9.5%
Food products +8.2%
Apparel +7.5%
Machinery +7.3%
Chemical products +6.3%
All manufacturing industries +5.9%
*CONSUMER PRICE INDEX (last 12 months) +5.0%
Beverage and tobacco products +4.8%
Miscellaneous durable goods +4.5%
*LAST FOUR QUARTERS CURRENT DOLLAR GDP +3.8%
Paper products +2.7%
Plastics and rubber products +1.6%
Fabricated metal products +1.2%
Electrical equipment, appliances, and components +0.8%
Computers and electronic products +0.5%
Durable goods industries -0.2%
Printing -1.7%
Wood products -4.3%
Furniture and related products -5.0%
Transportation equipment -6.8%
Textile mills -7.0%
Leather and allied products -7.7%
Textile products -8.7%
Nonmetallic mineral products -8.9%