Fed paid U.S. Treasury record $78.4B last year

The Federal Reserve paid a record $78.4 billion in earnings to the U.S. government last year, reflecting gains from the central bank's unconventional efforts to lift the economy.

The payment to the Treasury Department is the largest since the Fed began operating in 1914. It surpasses the previous record $47.4 billion paid in 2009, the Fed said Monday.

The bigger payment mostly came from more income generated by the Fed's massive portfolio of securities, which includes Treasury debt and mortgage securities.

In early November, the Fed launched a program to bolster the economy by purchasing $600 billion worth of Treasury debt through June. The program aims to boost the economy by lowering rates on mortgages and other loans and by lifting stock prices.

To fight the financial crisis and lift the country out of recession, the Fed bought $1.4 trillion of mortgage-backed securities and mortgage debt as well as up to $300 billion worth of government debt. The Fed completed the mortgage purchases last year.

The Fed's balance sheet now stands at $2.4 trillion, nearly triple its size from before the financial and economic crises.