Some good comments above. Well done.
But, Kudlow talks politics more than economics. The nonsense about "spillover effects" is the babbling of a man who's forgotten that money causes inflation.
All the rest is hot air.
The bond market test is about the be proven. When the 10-year US note futures contract falls below 107.26, and the bond market malaise turns into panicked selling, the gasbags at the Fed will have to do some serious tightening, and I don't think they're ready for that.
This is gonna be fun, as long as you're not long the bond market.
What I like about Bernanke, is that I think and hope that he isn't going to meddle in the economy -- such as Greenspan, who singlehandedly crashed the stock market by his unnecessary and large interest rate increases, because he decided that the stock market was too high and it was his job to crash it.
I think Bernanke will focus on the money, and not be driven by the behavior of the economy in general, the stock market, real estate market or other things. The more he stays out of things, the better it will be.