Ex-car czar defends Obama administration's actions

NEW YORK May 26 (Reuters) - Former car czar Steve Rattner on Wednesday defended the administration of President Barack Obama before an audience of wealthy investors, one of whom booed his remark that U.S. income inequality must be addressed.

Rattner, who has been caught up in a corruption probe of New York state's pension fund, said that contrary to the belief of some in the financial world, the Obama administration has done a good job at righting a weak economy.

Rattner cited growth rates that have been stronger than expected since the depths of the crisis in the fourth quarter of 2008.

"I think the administration has done a pretty good job of navigating some tough waters," Ratter told the 15th annual Ira Sohn research investment conference, which attracts some of the best-known hedge funds.

Taxes are heading higher, he said, citing the recently passed bill on healthcare as an example. Rattner cited figures that showed the wealthy have gotten richer at a higher rate now when compared with the recession of the early 1990s, and he said that income inequality must be addressed, which drew a loud boo from the audience.

"I hope that was a joke," Rattner said. (Reporting by Herbert Lash; Editing by Gary Hill)