Friday, January 10, 2014

Janet Yellen Will Be a Fed Chair for the Real, Everyday Economy - TIME

Janet Yellen Will Be a Fed Chair for the Real, Everyday Economy

Read more: Janet Yellen Confirmed as Chair of the Federal Reserve | TIME.com http://business.time.com/2014/01/06/janet-yellen-fed-chair/#ixzz2q03HliBK



Dr. Janet Yellen during her confirmation hearing of the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill November 14, 2013 in Washington.
Brendan Smialowski / AFP / Getty Images
Dr. Janet Yellen during her confirmation hearing of the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill November 14, 2013 in Washington.
Janet Yellen, vice chairman of the Federal Reserve, was confirmed Monday by the Senate to succeed Chairman Ben Bernanke as the next head of America’s central bank. Her term, which begins Feb. 1, will mark an important shift in the direction of the bank’s policy efforts, as it begins to “taper” back the past five years of unconventional monetary policy, which have resulted in the Fed pouring some $3.8 trillion into the U.S. economy following the financial crisis.
While Yellen’s appointment marks continuity with the Bernanke era, and with the Fed’s policy of quantitative easing of which she was one of the chief architects, it also heralds a number of firsts. Yellen is the first woman to head the central bank, but even more important, she’s also its first openly reform-minded, Keynesian-oriented leader. A stellar academic economist and 36-year Fed veteran with a particular focus on the human impact of unemployment, Yellen has said on many occasions that the past five years of crisis, joblessness and slower growth “aren’t just statistics to me.”
While former Fed colleagues like Donald Kohn, Alan Blinder and Larry Meyer cite her as among the most data-driven and analytical economists around, she’s also someone who’s more interested in clear, well-articulated ideas with real-world impact than creating the cleverest mathematical models. That commitment was partly inspired by her Yale mentor, the legendary liberal economist James Tobin, who argued that the first priority of economics was to improve the lives of real people.
You can bet that Yellen will be keeping that in mind as she slowly and carefully continues the paring back of quantitative easing that began in December. The challenge will be to keep both the markets and the economy steady as the central bank exits from the largest bout of unconventional monetary policy in history. While the Fed’s dual mandate of keeping inflation and unemployment low will be her first task, there’s currently no conflict there, since inflation is running far below the 2% target that Yellen herself crafted, meaning that tapering doesn’t need to be rushed. She’ll also have her eye on banking reform. Blinder, who was the Fed vice chair back in the 1990s when Yellen was a governor, remembers speaking with her “many times about how the Fed was being too lax on regulation.” And since then, he adds, “things have only gotten worse.”
To do all that, she’ll need to build consensus among a group of Federal Reserve governors who are increasingly independent. Fortunately, says Kohn, who worked with her as a Fed staffer in the mid-1990s, “Janet brings a CEO-type skill set to this job.” He and many others say she’s a “listener and a questioner” who likes to surround herself with the smartest people possible, hear out their arguments, challenge them on any weaknesses, then take her own decisions.
It’s a managerial strategy that seems to have worked, as Yellen has the best track record on policy predictions of any Fed leader since 2009. While she’s often characterized as the “nicest” big-name economist around, no one should mistake that for a lack of spine. “She can get at the strengths and weaknesses of someone’s arguments so quickly,” says Berkeley professor and Haas School of Business colleague James Wilcox, “but so politely. She’s got that ‘iron fist in a velvet glove’ quality.” It’s a quality that will likely serve her well as she steers the most important institute in America today toward a new era of monetary policy.


Read more: Janet Yellen Confirmed as Chair of the Federal Reserve | TIME.com http://business.time.com/2014/01/06/janet-yellen-fed-chair/#ixzz2q041STnV

Thursday, January 9, 2014

Christie Faces Scandal on Traffic Jam Aides Ordered - New York Times

Christie Faces Scandal on Traffic Jam Aides Ordered

http://www.nytimes.com/2014/01/09/nyregion/christie-aide-tied-to-bridge-lane-closings.html?nl=us&emc=edit_cn_20140108&_r=1

By KATE ZERNIKEJAN. 8, 2014

    There were long lines at the local approaches to the George Washington Bridge from Fort Lee, N.J., on Sept. 12, 2013, because all but one, right, had been closed. Amy Newman/Northjersey.com

    The mystery of who closed two lanes onto the George Washington Bridge — turning the borough of Fort Lee, N.J., into a parking lot for four days in September — exploded into a full-bore political scandal for Gov. Chris Christie on Wednesday. Emails and texts revealed that a top aide had ordered the closings to punish the town’s mayor after he did not endorse the governor for re-election.
    “Time for some traffic problems in Fort Lee,” Bridget Anne Kelly, a deputy chief of staff to Mr. Christie, emailed David Wildstein, a high school friend of the governor who worked at the Port Authority of New York and New Jersey, which runs the bridge.
    Later text messages mocked concerns that school buses filled with students were stuck in gridlock: “They are the children of Buono voters,” Mr. Wildstein wrote, referring to Mr. Christie’s opponent Barbara Buono.

    RELATED COVERAGE

    The emails are striking in their political maneuvering, showing Christie aides gleeful about some of the chaos that resulted. Emergency vehicles were delayed in responding to three people with heart problems and a missing toddler, and commuters were left fuming. One of the governor’s associates refers to the mayor of Fort Lee as “this little Serbian,” and Ms. Kelly exchanges messages about the plan while she is in line to pay her respects at a wake.

    Document: Emails Between Top Christie Aides and Port Authority Officials

    Mr. Christie denied knowledge of the emails and said his staff was to blame. The growing scandal threatens to tarnish him at the moment he assumes an even larger position on the national stage, as chairman of the Republican Governors Association and an all-but-certain candidate for his party’s presidential nomination in 2016.
    While the emails do not establish that the governor himself called for the lane closings, they show his staff was intimately involved, contrary to Mr. Christie’s repeated avowals that no one in his office or campaign knew about them. In fact, the emails show, several staff members and appointees worked to cover up the scheme under the ruse that it was a traffic study.
    The disclosing of the emails will probably intensify an investigation into the lane closing by the Port Authority Inspector General’s office, which opened a formal inquiry in December. At that time, the deputy inspector general, Michael Nestor, confirmed the investigation, and another official said the office was seeking to determine whether there was any abuse of authority or gross mismanagement.
    The emails could represent evidence that government resources were used for political purposes, a potential crime. Mr. Nestor did not respond to a telephone message on Wednesday seeking comment.
    On Wednesday, the normally voluble Mr. Christie was largely quiet. He and his staff had apparently been caught off-guard by the day’s revelations. He canceled his one scheduled public event, where he was expected to talk about progress in recovering from Hurricane Sandy. Late in the afternoon, he issued a statement saying that he had seen the exchanges “for the first time” and casting blame on his staff for “unacceptable” behavior.
    “I am outraged and deeply saddened to learn that not only was I misled by a member of my staff, but this completely inappropriate and unsanctioned conduct was made without my knowledge,” Mr. Christie’s statement said. “One thing is clear: This type of behavior is unacceptable, and I will not tolerate it because the people of New Jersey deserve better. This behavior is not representative of me or my administration in any way, and people will be held responsible for their actions.”
    His office did not respond to follow-up inquiries about whether this meant Ms. Kelly, or anyone else, had been fired. Mr. Wildstein, along with Bill Baroni, Mr. Christie’s top appointed staff member at the Port Authority, resigned in December after port officials testified in a legislative hearing that the men had violated protocols and had sought to hide their plans for the lane closings from Fort Lee officials, the police and even other Port Authority officials.
    The documents were obtained by The New York Times and other news outlets Wednesday. They are heavily redacted by Mr. Wildstein, who turned them over under a subpoena from Democratic legislators investigating the lane closing, making it hard to determine in some cases who is speaking.

    RELATED IN OPINION

    But they indicate that Mr. Christie’s staff, appointees at the Port Authority, and his campaign office were all intimately involved in discussing the growing scandal and how to react to it even as it was unfolding.
    After New York appointees at the Port Authority, who had not been warned in advance about the closings, reopened the lanes four days after they were closed, Mr. Wildstein and Ms. Kelly expressed panic, but Mr. Wildstein assured her that David Samson, Mr. Christie’s handpicked chairman of the Port Authority, was “helping us to retaliate.”
    When reporters began calling to ask about the lane closings, Mr. Wildstein and Ms. Kelly worked with Michael Drewniak, the governor’s chief spokesman, to fashion a statement saying that the port was “reviewing traffic safety patterns” at the bridge and had been “in contact with Fort Lee police throughout this transition.”
    In fact, bridge officials testified in December that Mr. Baroni and Mr. Wildstein instructed them not to tell the Fort Lee police, or anyone else, about the lane closings before they happened. They also testified that they did not believe there had been any traffic study; none were produced after the lane closings, and any study of traffic patterns could have been done using computer models of data routinely collected at the bridge.

    Timeline of Events

     

    Aug. 13, 2013

    Bridget Anne Kelly, a deputy chief of staff to Gov. Chris Christie, emails David Wildstein, Mr. Christie’s close friend and appointee at the Port Authority, which controls the bridge. “Time for some traffic problems in Fort Lee,” she wrote.
    In early October, Mr. Wildstein wrote to Bill Stepien, Mr. Christie’s campaign manager, about an article in The Wall Street Journal about the suspicious lane closings.
    “It’s fine,” replied Mr. Stepien, recently named by Mr. Christie to be head of the state Republican party and a top adviser to the Republican Governors Association. “The mayor is an idiot, though.” He added, with an apparent typo, “When some, lose some.”
    “It will be a tough November for this little Serbian,” Mr. Wildstein replied. (The mayor of Fort Lee, Mark Sokolich, at whom that barb was aimed, is actually of Croatian descent.)
    After another story a few weeks later, Mr. Stepien assured Mr. Wildstein, “For what it’s worth, I like you more on October 2, 2013 than I did on October 2, 2009.”
    Mr. Baroni and Mr. Wildstein resigned their positions in December as the scandal began to cast a shadow over Mr. Christie’s political fortunes.
    Assemblyman John S. Wisniewski, a Democrat who has been leading legislative hearings on the closings, said Mr. Christie’s statement on Wednesday suffered from a “credibility gap.” He was skeptical, he said, that Ms. Kelly could sit “three chairs or four chairs away from the governor’s office” and be directing such an operation without his knowledge.
    “His front office is not a place where freelancers and independent actors are welcome,” he said. “It’s a tight ship.”
    “No matter who’s fired or resigns, we still have questions without answers,” he added.
    Mr. Christie was cruising to re-election over Ms. Buono in the fall, but he and his campaign were leaning on local Democratic officials to endorse him so that he could pitch himself to national Republicans as the presidential nominee who could attract broad bipartisan support.
    More than 50 local Democrats endorsed Mr. Christie, and some whispered that they feared the governor would withhold state money or favor if they did not go along.
    Mr. Sokolich, a Democrat, was among those who did not endorse him.

    RECENT COMMENTS

    • SEE ALL COMMENTS
    This week, Steve Fulop, the mayor of Jersey City and a rising Democratic star, said the governor’s office had canceled meetings with him in October the day that he said he would vote for Ms. Buono.
    95
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    IMAGE BY GOOGLE EARTH

    The governor’s office dismissed it as routine schedule changes. But the emails that came to light on Wednesday show that Mr. Fulop’s reluctance to endorse the governor did not sit well with the governor’s office. In one exchange, Mr. Christie’s aides and the Port Authority staff talked about how they were ignoring messages from the mayor of Fort Lee, who had called Mr. Baroni to report the lane closings as “urgent matter of public safety.”
    “Did he call him back?” Ms. Kelly asked.
    “Radio silence,” Mr. Wildstein replied. “His name comes right after Mayor Fulop.”
    “TY,” she wrote, using shorthand for thank you.
    Mr. Sokolich texted Mr. Baroni, Mr. Christie’s chief appointee at the Port Authority, later in September seeking to understand why the lanes were closed, and said people were saying it was “punishment.”
    “Try as I may to dispel these rumors I am having a tough time,” he wrote.
    Mr. Sokolich, in an interview on Wednesday, said he found the emails — particularly the one referring to him as “this little Serbian” — “condescending, offensive, insulting and slanderous.”
    “How dare you?” he added.
    For weeks, Port Authority officials and Mr. Christie’s office declined to address the lane closings. Mr. Baroni told other port officials that they were not to discuss the closings publicly.
    After the initial legislative hearings late last year, Mr. Christie mocked the idea that he might have been involved, joking, “I actually was the guy working the cones,” and then adding, “You are not really serious.”
    When he announced Mr. Baroni’s resignation in December, he said that he had “made it very clear to everyone on my senior staff that if anyone had any knowledge of this that they need to come forward.”
    “They’ve all assured me that they don’t,” he said. “I’ve spoken to Mr. Stepien and he has assured me the same thing.”
    Mr. Wildstein is scheduled to testify before the legislative committee on Thursday, but he has filed a motion to quash the subpoena compelling his testimony. A judge is expected to rule on his motion in the morning.
    Correction: January 8, 2014 
    Because of an editing error, an earlier version of this article incorrectly stated that Bridget Anne Kelly was texting with David Wildstein about children being late to school as a result of the lane closures. The documents are redacted and who was texting with Mr. Wildstein is not identified. The article also rendered the attribution for the quotes incorrectly. The unidentified person said, “Is it wrong that I am smiling?” And Mr. Wildstein responded, “No,” and then added, “They are the children of Buono voters.”
    Correction: January 8, 2014 
    An earlier version of this article misspelled the surname of Mr. Christie’s campaign manager. He is Bill Stepien, not Stepian.
    William K. Rashbaum and Nate Schweber contributed reporting.

    What the Super-Rich Are Spending Their Fortunes On Now - TIME

    What the Super-Rich Are Spending Their Fortunes On Now

    Read more: What the Super-Rich Are Spending Their Fortunes On Now | TIME.com http://business.time.com/2014/01/07/what-the-super-rich-are-spending-their-fortunes-on-now/#ixzz2pu888CY0



    Billionaires are giving in big numbers again, reflecting a strong stock market and rising confidence among the super rich
    An employee inspects U.S. dollar bills before changing it to Philippine Pesos inside a money changer in Manila
    Romeo Ranoco / Reuters
    The super rich are feeling more generous, according to new research on charitable giving. That’s good news for nonprofits. But it’s yet another sign that the divide between the wealthy and everyone else grows larger by the day.
    The 10 largest publicly announced charitable donations of 2013 totaled $3.4 billion, reports the Chronicle of Philanthropy. That’s down from $5 billion in 2012, a year skewed by a special $3 billion gift from Warren Buffett to his children’s foundations. The biggest gift of 2013 was from Facebook founder Mark Zuckerberg and his wife Priscilla Chan: $992 million of Facebook stock to the Silicon Valley Community Foundation. It was the first time the largest single charitable donation came from someone under the age of 30.
    In general, big gifts were up: 15 gifts were $100 million or more, up from 11 in 2012, according to the report. At the more, uh, pedestrian level of gifts equaling $1 million or more, total donations came to $9.6 billion in 2013, up from $6.1 billion the year before. These numbers fall just short of peak giving in 2007, the year before the Great Recession. Then, the biggest gifts totaled $4.1 billion and, like 2013, all were at least $100 million.
    The surge in giving by the super wealthy is at odds with trends among Americans further down the income spectrum. “Donations from the affluent and those who have middle incomes remains sluggish,” says Stacy Palmer, editor of the Chronicle. Individual giving grew only 3.9% in 2012, the most recent data available from Giving USA. Palmer believes individual giving will be flat in 2013 and won’t recover to pre-recession levels for several more years.
    Giving is closely linked to the economy. These trends suggest that many middle income Americans continue to struggle while the economy of the super rich has recovered nicely, perhaps most evident in record stock prices. Rounding out the largest charitable donations:
    • Phil (Nike chairman) and Penelope Knight, a $500 million pledge to Oregon Health & Science University Foundation, for cancer research.
    • Michael Bloomberg (former New York mayor), a $350 million pledge to the Johns Hopkins University for an effort to promote cross-disciplinary work and for student financial aid.
    • Charles Johnson (financier) a $250 million pledge to Yale University, for residential college buildings.
    • Stephen Ross (real estate developer), a $200 million pledge to University of Michigan for athletics and the business school.
    • Muriel Block (real estate heiress), a $160 million bequest to Albert Einstein College of Medicine of Yeshiva University
    • John Arrillaga (real estate developer), a $151 million pledge to Stanford University.
    • Irwin Jacobs (Qualcomm cofounder) and wife Joan, a $133 million pledge to the Jacobs Technion-Cornell Innovation Institute at Cornell NYC Tech.
    • Charles Munger (vice-chairman of Berkshire Hathaway), a $100 million pledge to University of Michigan, for student housing.
    • David Koch (Koch Industries), a $100 million pledge to New York-Presbyterian Hospital, for a new ambulatory care center.
    • Frank McCourt (real estate developer), a $100 million pledge to Georgetown University, to create the McCourt School of Public Policy.
    • Ronald Perelman (investor), a $100 million pledge to Columbia University Business School, for a new building.
    • · T. Denny Sanford (chairman of United National), a $100 million pledge to University of California at San Diego, for a new stem cell center.
    • Stephen Schwarzman (financier), a $100 million pledge to Tsinghua University, for scholarships for graduate students around the world.
    • Deborah Joy Simon (real estate heiress), a $100 million pledge to Mercersburg Academy, for financial and academic programs.


    Read more: What the Super-Rich Are Spending Their Fortunes On Now | TIME.com http://business.time.com/2014/01/07/what-the-super-rich-are-spending-their-fortunes-on-now/#ixzz2pu8QrWFB

    Wednesday, January 8, 2014

    To Stop Procrastinating, Look to Science of Mood Repair - Wall Street Journal

    To Stop Procrastinating, Look to Science of Mood Repair

    http://online.wsj.com/news/articles/SB10001424052702303933104579306664120892036?mod=e2fb

    Jan. 7, 2014 8:03 p.m. ET
    Several new studies help explain what's happening in the brain when people procrastinate. WSJ's Sue Shellenbarger unpacks the latest research and software engineer Sean Gilbertson shares his story. Photo: Getty Images.
    Procrastinators, take note: If you've tried building self-discipline and you're still putting things off, maybe you need to try something different. One new approach: Check your mood.
    Often, procrastinators attempt to avoid the anxiety or worry aroused by a tough task with activities aimed at repairing their mood, such as checking Facebook or taking a nap. But the pattern, which researchers call "giving in to feel good," makes procrastinators feel worse later, when they face the consequences of missing a deadline or making a hasty, last-minute effort, says Timothy Pychyl (rhymes with Mitchell), an associate professor of psychology at Carleton University in Ottawa, Canada, and a researcher on the topic.
    Increasingly, psychologists and time-management consultants are focusing on a new strategy: helping procrastinators see how attempts at mood repair are sabotaging their efforts and learn to regulate their emotions in more productive ways.
    Time Travel: If you are rebelling against the feeling of having to work, try projecting yourself into the future. Imagine the good feelings you will have if you stop procrastinating and finish a project (or the bad feelings you will have if you don't finish). Kyle T. Webster
    'Just Get Started': If you are feeling frightened of possible failure, just get started. Tell yourself you don't have to do the whole project. Just do the first one or two steps on it. Kyle T. Webster
    Forgive Yourself: If you are feeling guilty about procrastinating, stop beating yourself up. Replace the negative thoughts with something more positive. Kyle T. Webster
    Easy Things First: If you are feeling a lot of dread about one task in particular on your to-do list, start with something else, preferably the task you feel most like doing. The momentum you gain will help you start the toughest task later. Kyle T. Webster

    Vote and Comment

    The new approach is based on several studies in the past two years showing that negative emotions can derail attempts at self-control. It fills a gap among established time-management methods, which stress behavioral changes such as adopting a new organizing system or doing exercises to build willpower.
    Gisela Chodos had a habit of procrastinating on cleaning the interior of her car until it became so littered with toys, snack wrappers, fast-food bags, pencils and other stuff that she was embarrassed to park it in a public lot or offer anyone a ride, says Ms. Chodos, a Salt Lake City mother of two school-age children and part-time computer-science student.
    She came across podcasts by Dr. Pychyl in 2012 and realized she was just trying to make herself feel better when she told herself she would feel more like tackling a task later. She says, "I am trying to run away from the feelings and avoid the discomfort"—the anxiety she often feels that her work won't be good enough or that someone will disapprove.
    "Emotion is at the core," Ms. Chodos says. "Just knowing that gives me a little bit of fight, to say, 'Fine, I'm feeling discomfort, but I'm going to feel more discomfort later' " if the job is left undone. The insight has helped her get around to cleaning her car more often, she says; "it's been a long time since my car was so bad that I freaked out at the thought someone might look inside."
    Researchers have come up with a playbook of strategies to help procrastinators turn mood repair to their advantage. Some are tried-and-true classics: Dr. Pychyl advises procrastinators to "just get started, and make the threshold for getting started quite low." Procrastinators are more likely to put the technique to use when they understand how mood repair works, says Dr. Pychyl, author of a 2013 book, "Solving the Procrastination Puzzle." He adds, "A real mood boost comes from doing what we intend to do—the things that are important to us."
    He also advises procrastinators to practice "time travel"—projecting themselves into the future to imagine the good feelings they will have after finishing a task, or the bad ones they will have if they don't. This remedies procrastinators' tendency to get so bogged down in present anxieties and worries that they fail to think about the future, says Fuschia Sirois, a psychology professor at Bishop's University in Sherbrooke, Quebec, and author of a forthcoming 4,000-person study on the topic.
    Kyle T. Webster
    Sean Gilbertson read an earlier book by Dr. Pychyl in 2012 after trying other time-management techniques such as keeping a daily log of his attitudes. The Minneapolis software engineer says the techniques didn't go deep enough to help him see how his emotions were blocking action and shift them in a more positive direction. Using the time-travel technique, he asks himself, "What negative things will happen if I procrastinate? Will it come up in my review? How will it affect my reputation? Will it affect my raise and bonuses?"
    He used the technique recently when programming a prototype of a medical device to help doctors prevent pressure sores in wheelchair-bound patients. He imagined the good feelings he would have after completing the project well and pleasing his client and his employer. He envisioned patients "living happily and feeling better." The resulting positive feelings gave him the energy to de-bug the device faster and finish the three-month project on time. The client was so pleased that "just talking to them is a pleasure," he says.
    About 20% of adults claim to be chronic procrastinators, based on research by Joseph Ferrari, a psychology professor at DePaul University, Chicago, and others. Other studies suggest the rate among college students may be as high as 70%. The habit predicts lower salaries and a higher likelihood of unemployment, according to a recent study of 22,053 people co-authored by Dr. Ferrari.
    Procrastination also predicts such long-term problems as failing to save for retirement and neglecting preventive health care. Studies show men are worse procrastinators than women, and researchers suspect the habit plays a role in men's tendency to complete fewer years of education.
    Most procrastinators beat themselves up even as they put things off, repeating negative thoughts such as, "Why can't I do what I should be doing?" or, "I should be more responsible," says Gordon Flett, a psychology professor at York University in Toronto. "That negative internal dialogue reflects concerns and doubts about themselves," Dr. Flett says.
    One mood-repair strategy, self-forgiveness, is aimed at dispelling the guilt and self-blame. University freshmen who forgave themselves for procrastinating on studying for the first exam in a course procrastinated less on the next exam, according to a 2010 study led by Michael Wohl, an associate professor of psychology at Carleton.

    Thomas Flint learned about the technique by reading research on self-regulation, including studies by Dr. Sirois and Dr. Pychyl. He put it to use after his family moved recently to a new house in Sewell, N.J. Instead of beating himself up for failing to unpack all the boxes stacked in his garage right away, Mr. Flint decided to forgive himself and start with a single step. "I'd say, 'OK, I'm going to take an hour, with a goal of getting the TV set up, and that's it,' " he says; then he watched a TV show as a reward. Allowing himself to do the task in stages, he says, is "a victory."

    Umbilical Cord Draws Focus From More Scientists Seeking Cures - Wall Street Journal

    Researchers see new potential for using blood found in the umbilical cord of newborns to treat a range of diseases.


    http://online.wsj.com/news/articles/SB10001424052702303933104579304423948184180?mod=e2fb


    By 
    PETER LOFTUS 
    CONNECT
    Jan. 6, 2014 7:21 p.m. ET
    Researchers see new potential for using blood found in the umbilical cord of newborns to treat a range of diseases. Transplants using the stem-cell-rich blood have already become lifesaving treatments for certain cancers and disorders of the blood, but these studies focus on a wider range of conditions.
    Scientists are studying whether cord blood or cord tissues can treat certain autoimmune disorders such as Type 1 diabetes and rheumatoid arthritis, as well as congenital heart disease and cerebral palsy. Experts caution that more studies are needed to prove whether cord blood is safe and effective for these uses, but some see initial signs of hope.
    "The early data look very promising that this could be a useful new source of cells that could benefit a larger number of people," said John Wagner, a professor of pediatrics and director of the blood and marrow transplant program at the University of Minnesota.
    Cord blood is found in the placenta and umbilical cord of newborns, and contains stem cells, general-purpose cells that can proliferate and generate more specialized cells.
    Jennifer Jones Austin benefitted from a cord-blood transplant. Rob White Photography
    Hematopoietic stem cells, which are similar to stem cells found in bone marrow, are one of the researchers' areas of focus. Cord-blood transplants replenish the hematopoietic stem cells that are destroyed by chemotherapy and radiation given to people with certain leukemias, lymphomas and other diseases. More than 30,000 cord-blood transplants have been performed since the first reported procedure in 1988.
    Cord blood can be collected with no risk to the mother or child and can be frozen and stored for many years. Bone marrow must be extracted from a donor in an invasive procedure. It has been the standard option for stem-cell transplants, but cord blood is increasingly viewed as a viable alternative in certain cases. "It's a disposable item that Mother Nature provides us with," said William Shearer, a professor of pediatrics and immunology at Baylor College of Medicine. "It's a renewable source. It's free and why not use it?"
    Cord blood doesn't need to be as exact a match as bone marrow, making it easier for unrelated donors and recipients.
    Dr. Wagner also sees broader applications for cord blood in autoimmune diseases, in which the body's immune system mistakenly attacks healthy tissue. These could include Type 1 diabetes, multiple sclerosis and inflammatory bowel diseases.
    Studies of this approach in humans have been limited. Some found that giving children with Type 1 diabetes their own cord blood was safe but failed to significantly slow disease progression. Another study showed the technique reversed diabetes in mice, but it is often hard to replicate results from animal studies in humans. Other studies in human Type 1 diabetes are ongoing.
    Timothy Nelson, a physician at the Mayo Clinic in Rochester, Minn., is testing whether injecting cord-blood stem cells can help rebuild heart muscle in children born with a congenital heart defect called hypoplastic left heart syndrome. The condition leaves babies without a pumping chamber on the left side of the heart.
    Dr. Nelson is studying whether injection of cord-blood stem cells can strengthen the right-side heart chamber. The stem cells are taken from the child's own cord blood, banked at birth. The hypothesis is that the stem cells could stimulate tissue repair in the heart.
    Another potential application for cord blood is cerebral palsy. The movement and muscle disorder is caused by an abnormality in brain development, often from an injury before or around a child's birth. Joanne Kurtzberg, who heads the pediatric blood and marrow transplant program at Duke University Medical Center, is running a trial testing whether intravenous infusion of cord blood lessens symptoms of cerebral palsy in pediatric patients, using their own cord blood banked at birth. A prior study showed the method was safe, but the continuing study is designed to compare the efficacy of cord blood with a placebo.
    Public cord-blood banks have been created around the country to accept donated cord blood, which is used for transplants in unrelated patients. Donated cord-blood units comprise the vast majority of transplants conducted so far. More than 200 hospitals actively collect cord blood from babies whose mothers consent, and in some cases cord blood from babies born at nonparticipating hospitals can be collected in a kit and sent to public storage banks.
    Some parents choose to pay fees of about $2,000 upfront and more than $100 a year thereafter to store their baby's cord blood with private, for-profit banks, for use by the baby or family members later in life, if a disease treatable by cord blood arises. But the use of privately banked cord blood in transplants has been relatively low so far, and experts say the likelihood that a newborn would need his or her own cord blood to treat a disease is low.
    The American Academy of Pediatrics recommends that public cord-blood donations should be encouraged and private banking discouraged in most cases.
    Dr. Shearer, a co-author of the policy, says donated cord blood is of more help to others in need for a proven use, whereas blood stored privately is unlikely to be used. This could change over time if some new experimental uses prove workable.
    Cord Blood Registry, a for-profit operator of a private cord-blood bank, has released cord-blood units for established and experimental medical treatments, Chief Executive Geoff Crouse said.
    Mr. Crouse said some families choose private banking for later use by their baby or another family member to be assured that they would have a close or exact match in the event of needing a cord-blood transplant.
    One limitation of cord blood is that each donated unit typically contains relatively few usable cells. As a result, they have been primarily used in transplants for pediatric patients or small adults, though there is evidence that giving an adult two units of cord blood—from two different babies—can be effective.
    Jennifer Jones Austin, 45, received a cord-blood transplant from two babies in 2010 after undergoing chemotherapy and radiation to treat acute myeloid leukemia. The leader of a New York nonprofit had tried unsuccessfully to find a suitable match for a bone-marrow transplant, so her doctors turned to cord blood.
    She experienced a difficult recovery in the first few months after the transplant, but is now living cancer-free.
    She has returned to her full-time job and took a volunteer position as co-chair of the transition team for New York's new mayor, Bill de Blasio. She also joined the board of trustees of the New York Blood Center, which operates a public cord-blood bank. "I think those are good signs that I'm kind of back in business," she said.