The Bank of England for instance has avoided conflicts by issuing bills of just one week while the shortest duration offered

The Bank of England, for instance, has avoided conflicts by issuing bills of just one week, while the shortest duration offered by the British Treasury is a month.The Fed can still withdraw liquidity without this tool. But the right to issue bonds reduces the chances of policy error as the Fed unwinds its easing. Financial markets would take comfort that the Fed was less likely to botch its exit strategy.The lack of a full arsenal may help explain the recent timidity of the Fed. Laurence Meyer, a former Fed governor, told me recently he believes that a defeatist attitude has set in and the Fed is now prepared to "tolerate a forecast that is very poor over coming years."Fed officials could be more aggressive if they were less concerned about the increasing size of their balance sheet. (The Bank of Japan's balance sheet reached 30 percent of GDP at its peak in 2006 - more than twice the current size of the Fed.)The Fed still offers the best chance of a return to economic growth.

Congress should be willing to give it all the tools it needs.(Editing by Martin Langfield) Japan. Rep. Dennis Cardoza Joins FHLBank San Francisco Executives for Habitat forHumanity Build Day at Hope Village in ModestoFour Stanislaus County Families Enjoy New Homes, Phase I of Hope VillageDevelopment CompletedMODESTO, Calif., July 2 /PRNewswire-USNewswire/ -- Rep. Dennis Cardoza (D-CA)and representatives from the Federal Home Loan Bank of San Francisco (FHLBankSan Francisco) today gave four local families the keys to their new homes inHope Village. The presentation was made during a dedication ceremonyconcluding the Habitat for Humanity Stanislaus build day hosted by the FHLBankSan Francisco. The build day was a part of Habitat for Humanity's Congress Building America(CBA) program in which congressmen and their staff members, work alongsidecommunity volunteers to help the new homeowners complete the construction oftheir energy-efficient residences.

The day-long event completed phase one ofthe Hope Village development that will create a new 20-unit subdivision inModesto. "Despite the challenging economic times, public-private partnerships such asthe Hope Village development are critical to ensuring that working familiesand individuals, regardless of their income levels, have access to affordablehousing," said Rep Cardoza. "I applaud the Federal Home Loan Bank of SanFrancisco for granting funds from its Affordable Housing Program to help makethis project a reality. This program will continue to increase the supply ofaffordable housing throughout California." The Hope Village development received $500,000 in Affordable Housing Program(AHP) grants. FHLBank San Francisco awarded the grants to member institutions,Farmers & Merchants Bank and Oak Valley Community Bank, which used the fundingfor the Hope Village project.An AHP grant of $200,000 for the first 10-unitphase was awarded to Farmers & Merchants Bank in Round A of 2005. The secondphase of 10 additional homes received an AHP grant of $300,000 through FHLBankSan Francisco member Oak Valley Community Bank in Round A of 2009. Kevin Blackburn, Assistant Vice President of the FHLBank San Francisco, alsonoted that Hope Village is an example of a successful public-privatepartnership "Homeownership is the heart of the American dream," Mr Blackburnsaid.

"By working with our member institutions to make housing affordable,Federal Home Loan Bank of San Francisco brings together public and privateentities to build strong communities where working families and individualscan realize their dreams of purchasing homes."The Hope Village Development is one of 42 projects to receive AHP grantstotaling $30.3 million in Round A of the 2009 awards. Designed to be aflexible source of gap financing, the Bank's competitive AHP provides grantsto assist in the purchase, construction, or rehabilitation of housing forlower-income households.The Federal Home Loan Bank of San FranciscoThe Federal Home Loan Bank of San Francisco delivers low-cost funding andother services that help member financial institutions make home mortgages topeople of all income levels and provide credit that supports neighborhoods andcommunities. The Bank also funds community investment programs that helpmembers create affordable housing and promote community economic development.The Bank's members -- its shareholders and customers -- are commercial banks,credit unions, savings institutions, thrift and loans, and insurance companiesheadquartered in Arizona, California, and Nevada.CONTACT:Kevin Blackburn of Federal Home Loan Bank of San Francisco,+1-415-616-2572, SOURCEFederal Home Loan Bank of San FranciscoKevin Blackburn of Federal Home Loan Bank of San Francisco, +1-415-616-2572,. MOSCOW (Reuters) - Russia is not producing enough oil to fill a new $4 billion pipeline to the Baltic, which is meant to cut reliance on export routes via neighboring states, without making hard choices about flows through other outlets. China  |  Russia  |  Saudi ArabiaDiverting exports from other routes would risk losing market share to rival OPEC producers or harming ties with key energy partner Germany.Russia decided on the BTS-2 pipeline to its own Baltic ports after a pricing spat with Minsk disrupted flows via the Druzhba link through Belarus in early 2007.