On Wednesday, the U.S. central bank's Beige Book revealed "some districts noted falling prices for certain final goods, including groceries, apparel and autos."
The data publication comes just weeks before the Fed is set to meet to discuss its monetary policy, with many analysts pricing in an interest rate hike at its June meeting.
Sticking with the Fed, Dallas Fed President Robert Kaplan said in a speech the central bank will start trimming its balance sheet later this year, adding the economy is approaching full employment.
San Francisco Fed President John Williams is expected to speak later on Wednesday. Also, pending home sales fell 1.3 percent in April.
On the oil front, prices continue to show signs of being under pressure, as rising output from Libya and concerns surrounding U.S. production weighed on sentiment, with investors concerned about the glut in the market.
U.S. crude and Brent each traded at least 2.5 percent down at 2:14 p.m. ET, with WTI at $48.36 and Brent at $50.27.
No auctions are scheduled on Wednesday by the U.S. Treasury.