On the Fed's anniversary, social media personality gives uninformed praise

On December 23, 1913, the king of the progressive movement in the early 20th century and then president, Woodrow Wilson, signed the Federal Reserve Act into law.

In response to this dubious anniversary in our history and the destruction it has caused, leftist in centrist clothing, Ed Krassenstein took to Twitter (X) to say:

What a lot of people don't realize is that: 

1) The federal reserve has likely prevented some massive recessions and even depressions over the past century. 

2) Certain levels of inflation are healthy for the economy.

Hmmm..

Isn't it the Fed's inflationary policies that caused some of the most economically destructive times in our country--the 1920-1921 depression, the Great Depression and the 2008 Great Recession? Clearly a result of loose Fed monetary policies and a huge inflationary boom.

All the suffering and misery shoved on untold millions of Americans over the past century.

So, what is Krassenstein talking about?

In the second part of the tweet he says "certain levels of inflation are healthy for the economy". In previous tweets he states:

2% inflation is considered healthy by the vast majority of economists. Some think it's closer to 3%. Moderate inflation helps with debt relief, and encourages investment and spending. It works to keep an economy moving forward in many ways.

Not clear if Krassenstein can prove any of these things, other than regurgitating what he read on the internet. 

So, what is the best rate of inflation? I don’t know, Krassenstein doesn't know, and neither does the Federal Reserve know.

Lastly, a definition of inflation. Krassenstein, who claims to have an Economics degree from Rutgers, graduating with honors, said, "The inflation that we saw in 2022 and 2023 is mostly caused by the supply shock we saw due to COVID, and the workforce shortage that we endured due to COVID. When supply is held low and demand jumps due to COVID subsiding, prices have no where to go but up" (saying he is backed up by none other than Jerome Powell. 

Not hilarious at all!!??

In reality--Price increases in specific sectors of the economy may be caused by a variety of factors, but economy-wide price increases are always the result of the Federal Reserve’s easy money policies. Inflation is actually the act of money-creation by the central bank. Widespread price increases are a symptom, not a cause, of inflation.