Federal Reserve earnings climb 13% in second quarter WASHINGTON (MarketWatch) - The Federal Reserve earned $27.3 billion in the second quarter, largely from interest on its huge bond holdings, the central bank said Friday. That's up 13% from the first quarter. The Fed as usual gave most of its earnings, $26.8 billion, to the U.S. Treasury. In the first half of 2014, the Fed earned $57.6 billion, compared to $41.5 billion in the same six months of 2013. Some $51 billion was remitted to the Treasury, a move that helped pare the U.S. budget deficit to $460 billion in the first 10 months of the federal government's 2014 fiscal calendar. The Fed has sharply boosted its earnings over the past few years via interest paid on the trillions of dollars in Treasurys and mortgage-backed securities that the bank has purchased in an effort to stoke faster economic growth. The bank has slowed its purchases since the end of 2013 and expects to stop buying bonds by the fall. The Fed will still continue to earn interest, however, on its huge stockpile of bonds that it will continue to own. Eventually as the bonds reach maturity or are sold, the Fed is expected to start generating losses for an unspecified period.