Central banks, led by the US Federal Reserve, are facing a dilemma as they navigate the decision to make interest rate cuts. The central banks want to suppress wage rises before cutting rates, as they seek evidence of growing slack in the labor market. This approach is aimed at suppressing wages and living standards of the working class. However, there are concerns that the longer the higher interest rate regime continues, the greater the danger of financial problems erupting. Smaller and regional US banks have already been hit, and there are warnings of a looming crisis in commercial real estate. Fed Chair Jerome Powell has assured the markets that the Fed still expects to make around three rate cuts this year. The European Central Bank and the Bank of England are also concerned about wage growth. While the class struggle is rarely mentioned directly in central bank pronouncements, it is ever present at their deliberations [f52f3678].