After government data showed consumers were reluctant to take on more debt, and Federal Reserve Chairman Ben Bernanke hedged his bets on economic recovery, major US stock indices declined on Wednesday.

Bernanke said in a speech from Dallas, Texas, "The economy seems to have stabilized and is beginning to grow again. But we are far from being out of the woods."

High unemployment, rampant home foreclosures and poor credit access for small businesses were cited by Bernanke as causes of concern.

Signaling that households remain reluctant to ramp up spending, the US central bank reported that consumer credit dropped by $11.5 billion in February.

The blue-chip Dow Jones Industrial Average fell 72.47 points, or 0.66 percent, to 10,897.52. The broader Standard and Poor's 500 Index was down 6.99 points, or 0.59 percent, to 1,182.45. The technology-heavy Nasdaq Composite Index fell 5.65 points, or 0.23 percent, to 2,431.16.

There was a rise in the US currency against the euro to 74.91 euro cents from 74.74 euro cents on Tuesday. The dollar fell against the Japanese currency to 93.36 yen from 93.76 yen the previous day. (With Inputs from Agencies)