Local offices, where Federal Reserve officials can have direct and frequent contact with the financial institutions and businesses in the immediate region, can gather a wealth of very current information about economic conditions and the financial system within that region that may not be available from other sources.
The diversity of perspectives, the analysis backing those views, and the information the Reserve Banks bring from their regional contacts help us reach better policy decisions. The Reserve Banks are also a source of continuity, experience, and institutional memory, especially when, as now, the Board of Governors has experienced rapid turnover.