Every market commentator seemed focused Friday on the sharp rise in oil, and in turn seemed to ask every on-air interviewee for an opinion on the rally. This is the type of distraction I continue to warn readers about. Yes, it is important news that oil has moved up sharply today, but investors need to understand the rippling effect these types of situations produce in the market.Paying attention to how high oil and gas prices climb is not going to help you add profits to your portfolio. Deciphering the steps you need to take to protect your portfolio and profit against continuing signs of higher inflation and a poor fiscal policy are what investors need to focus on. The Federal Reserve has been barking lately that it's beginning to worry about inflation and the dollar's going to rise and gold is going to fall. That may happen in the short term, but the long-term dynamics will not be affected. My question is if the Fed were seriously worried about inflation then it would be taking immediate steps to raise interest rates, not lower them and let the central bank flood the market with loose money. Of course, we all know that the Fed's not going to start raising interest rates because it knows the housing market cannot handle it, and the Fed certainly does not want to add to the current banking crisis. Worldwide inflation is close to 10%, and many leading minds believe that U.S. inflation is close to 8%, not the manipulated numbers with which the government tries to fool the public. One of the ways to profit from higher inflation is to invest in gold or gold companies because that area of the market becomes a safe haven for investors as inflation heats up or financial fears in the market increase.