Excessive saving can be a problem, which the Fed is trying to address. It can be problem that can depress demand and drive down inflation to deflationary levels, which can further depress demand as people put off payments.<p>On the issue of penalising savers: passive savers can&#x27;t expect a good risk-less return on their investment when there isn&#x27;t the economic growth to support it. Savers are basically asking for a free lunch while everyone else is suffering from depressed incomes and profits when they complain about the Fed&#x27;s base rate decisions penalising savers.