The Federal Reserve will need to act on interest rates, representatives from two prominent fund managers said, but they differed on the tempo.
Martin Gilbert, chief executive of Aberdeen Asset Management, said, "The Fed do have to get on with it, because they're in a difficult position."
The Federal Open Market Committee (FOMC) was set for a two-day policy meeting on Tuesday and Wednesday. But while the Fed has indicated the meeting was "live," or that action was on the table, markets haven't been pricing in much chance of a hike.
According to the CME Group's FedWatch tool, market expectations for a September rate hike were a modest 15 percent, despite data showing U.S. consumer prices increased more than expected in August, pointing to a steady build-up of inflation that could allow the Fed to raise interest rates this year.
There were reasons to be concerned if the Fed didn't act, Gilbert told CNBC at the Singapore Summit on Saturday.
"If they don't do it, people will think that they know something that we don't, and we'll see a bit of panic at that stage," Gilbert said. "I think if they do modest rise this year, that's expected. I think it's in the price and it will be well received."