Philadelphia Federal Reserve president Anna Paulson said Tuesday that she supported the decision to hold interest rates steady last week and is keeping an open mind about next steps on setting rates, depending on where inflation moves. "The recent improvement in some inflation data is welcome," Paulson said in a speech titled "Keeping an Open Mind." "It is a step in the right direction, but it is only one step … I am keeping an open mind about where policy goes from here," she said. "Persistently elevated inflation suggests more restrictive policy may be needed," she said. Paulson is looking for more months of improving inflation data in deciding whether to keep rates steady or take action.