The fed couldn’t possibly stop a deflationary cycle when the currency/population ratio was determined by how many atoms of non-oxidizing noble metals happens to be in the earth’s crust.
The federal reserve themselves disagree with you [1].
Also note [2]:
"In 1913, this problem was addressed by the creation of the Federal Reserve System (Fed).33 The
Fed was to remedy the situation in a two ways. First, it would provide a means by which banks
could borrow in times of stringency to satisfy their customers’ demand for cash. Second, it could
create a new form of money, Federal Reserve notes, which could be expanded or contracted in
quantity to respond to the need for more cash."
"The creation of the Federal Reserve had little if any effect on the gold standard. The dollar was
still defined in terms of gold. Federal Reserve notes were redeemable in lawful money. The Fed
not only operated under the gold standard, but was charged with maintaining it, and kept a
percentage of gold cover for its notes. Gold still dictated the value of the dollar. "
“ Because the international gold standard linked interest rates and monetary policies among participating nations, the Fed’s actions triggered recessions in nations around the globe.”
That’s what I was alluding to, sorry for not being clear :)
Also note [2]:
"In 1913, this problem was addressed by the creation of the Federal Reserve System (Fed).33 The Fed was to remedy the situation in a two ways. First, it would provide a means by which banks could borrow in times of stringency to satisfy their customers’ demand for cash. Second, it could create a new form of money, Federal Reserve notes, which could be expanded or contracted in quantity to respond to the need for more cash."
"The creation of the Federal Reserve had little if any effect on the gold standard. The dollar was still defined in terms of gold. Federal Reserve notes were redeemable in lawful money. The Fed not only operated under the gold standard, but was charged with maintaining it, and kept a percentage of gold cover for its notes. Gold still dictated the value of the dollar. "
[1] https://www.federalreservehistory.org/essays/great-depressio....
[2] https://sgp.fas.org/crs/misc/R41887.pdf