The word of the year for political pollsters and analysts is "affordability." It's also on the minds of senior Fed officials as they think about the next rate cut.

Why it matters: The large split among Fed officials comes down to those who continue to see inflation as a more pressing risk — an issue vexing consumers — versus those who want to take another step to shield the weakening labor market.

What they're saying: "Part of why I continue to be hesitant about further easing ... is recognizing the concerns about the cost of living," Collins said in a response to a question from Courtenay on Saturday.

• Collins, who spoke to reporters on the sidelines of a conference hosted at the Boston Fed, said high price levels are a consistent topic when she meets with contacts around her district.
• "I certainly hear in every conversation I have the continued concerns and the challenges of high price levels," especially among low- and moderate-income households, Collins said.
• Additional inflation on top of that is "extremely challenging," Collins said. "That is one of the reasons why I highlight the risks related to bringing inflation down in a reasonable amount of time."

Between the lines: Collins, a voting member of the Fed's interest rate-setting committee, is among the unusually large constituency pushing back against a third consecutive rate cut in December — though the official stressed she had not "made a decision" yet.

• Key to the argument is the concern that the Fed still needs monetary policy at least somewhat tight to keep inflation in check.

Collins cited relatively robust economic demand that could push firms to pass a larger share of tariff-related costs onto consumers.

• Financial conditions — including the booming stock market — are also a "headwind," Collins added. "That set of considerations does make me hesitant," she said.

The big picture: Economic sentiment remains near rock-bottom levels, with consumers still "frustrated about the persistence of high prices and weakening incomes," Joanne Hsu, director of the University of Michigan's consumer survey, said in a statement last week.

• Even though consumer inflation expectations have come down, survey respondents "continue to report that their personal finances now are weighed down by the present state of high prices," Hsu said.
• That dissatisfaction is apparent in new polling numbers that show plummeting approval for President Trump's economic policies.
• Roughly one-third of voters in mid-November said they approved of Trump's handling of the economy, the worst reading of his second term and well below the 52% who said the same in March, according to a poll from CBS News.

The bottom line: Consumers' frustrations with high prices and the stagnant labor market mirror the huge division at the Fed, where officials are split over whether to prioritize still-high inflation or weak hiring.

A slew of surveys of manufacturers in recent days points to some sector improvement as a challenging year for American factories comes to a close.

Driving the news: A production index in the Dallas Fed's survey of Texas manufacturing activity surged 15 points to 20.5 in November, the bank said this morning, "indicating a notable pickup in output growth."

• It was fueled by a sharp rise in the new orders index, to 4.8 from -1.7.
• It follows other survey evidence pointing in the same direction.

Catch up quick: The Kansas City Fed's composite index for factory activity in the Plains states rose to 8 this month, from 6 in October. That's the highest reading in more than three years.

• The New York Fed's Empire State Manufacturing Survey general business conditions index rose 8 points to 18.7 in November, the strongest reading in the last year.
• The S&P Flash PMI released on Friday rose to 54.8 from 54.6, reaching a four-month high.

Of note: S&P said that the upturn was led by the service sector, but that it was "accompanied by a further robust increase in manufacturing production."

The intrigue: The Dallas Fed reported its labor market measures pointed to "flat head counts" as the employment index was little changed.

• Nationwide, manufacturing employment was down 94,000 jobs in September from one year earlier, as the sector has been buffeted by wobbly demand and new tariffs.