Matthew Jaremski and David Wheelock look at the issue:
Probably more important than the physical locations of Reserve Banks is the distribution of monetary policymaking authority on the Federal Open Market Committee (FOMC). Some argue that the Reserve Banks outside of New York should have a stronger voice on the FOMC (e.g., Fisher 2015), while others propose to weaken or even remove altogether the Reserve Banks from monetary policymaking. Those who favour a continued or expanded role for the Reserve Banks contend that the system’s regional diversity and political independence contribute to better policymaking. A system that is responsive to differing economic conditions that might exist across the regions of a large and diverse nation was certainly a principle on which the Federal Reserve was established.