Treasury yields rose, with the 2-year yield near 1 percent for its highest since Jan. 8.
The U.S. dollar index held higher, with the euro near $1.108 and the yen at 113.65 yen against the greenback as of 8:38 a.m. ET.
Industrial production declined 0.5 percent in February, with capacity utilization at 76.7 percent.
The FOMC is due to conclude its two-day meeting on Wednesday with the 2 p.m. ET release of its statement and economic projections. Those include the highly scrutinized "dot plot," which shows the targets for appropriate federal funds rates by FOMC participants.
Fed Chair Janet Yellen is also scheduled to give a news conference at 2:30 p.m.
While policy is widely anticipated to remain unchanged, with the Fed Funds Rate left at 0.25 to 0.50 percent, the Fed's updated economic forecasts and Yellen's post-meeting press conference will be scrutinized for insight into the near-term policy outlook.
"Given the likely downward revision to the Fed's GDP growth forecast in the current year (from 2.5 percent), the dot plots of FOMC member views will also likely signal a slower pace of further hikes over the remainder of the year, with the median expectation of the Fed Funds Rate at end-2016 likely to be pushed lower by 25 or 50 basis points from the range of 1.25-1.50 percent signaled at December's meeting," said economist at Daiwa Capital Markets, Emily Nicol.