GBP/USD maintains position near 1.2900 as concerns over US economic growth persist

• GBP/USD rises as the US Dollar weakens amid fears that tariff policy uncertainty could drive the US economy into recession.
• Concerns over the US economy deepened after Trump described it as being in a "transition period," signaling a potential slowdown.
• The Pound Sterling appreciated after BoE's Catherine Mann rejected the need for a "gradual and cautious" approach to monetary easing.

The GBP/USD pair recovers recent losses from the previous session, trading around 1.2890 during Asian hours on Tuesday. The pair edges higher as the US Dollar (USD) struggles amid concerns that tariff policy uncertainty could push the US economy into recession.

Weaker-than-expected US job data for February has strengthened expectations of multiple Federal Reserve (Fed) rate cuts this year. LSEG data shows that traders now anticipate a total of 75 basis points (bps) in cuts, with a June rate reduction fully priced in.

US economic concerns grew after President Donald Trump characterized the economy as being in a "transition period," hinting at a potential slowdown. Investors took his remarks as an early signal of possible economic turbulence in the near future.

However, Fed Chair Jerome Powell reassured markets that the central bank sees no immediate need to adjust monetary policy despite rising uncertainties. San Francisco Fed President Mary Daly echoed this sentiment on Sunday, noting that increasing business uncertainty could dampen demand but does not justify an interest rate change.

With the Federal Reserve entering its blackout period ahead of the March 19 meeting, central bank commentary will be limited this week. Investors are now looking ahead to February's Consumer Price Index (CPI) release on Wednesday for further insights into inflation trends.

The GBP/USD pair strengthened as the Pound Sterling (GBP) found support after Bank of England (BoE) Monetary Policy Committee (MPC) member Catherine Mann dismissed the need for a "gradual and cautious" approach to monetary easing in response to rising global economic volatility during her speech last week.

However, before Mann's remarks, four BoE officials, including Governor Andrew Bailey, had advocated for a measured approach to reducing monetary policy restrictiveness, citing concerns that inflation persistence is unlikely to subside "on its own accord."