(Bloomberg) -- Federal Reserve Bank of Philadelphia President Anna Paulson said she will keep an open mind about the path for interest rates, focusing on the trends of underlying inflation. However, the fact that underlying inflation has "edged down modestly" over the last year could also point that rates are "not restrictive enough," Paulson said. Fed officials kept interest rates unchanged for the fifth straight time last week. It is a step in the right direction, but it is only one step," Paulson said on Tuesday. Underlying inflation, she estimates, runs somewhere between 2.4% and 2.8%.