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**Republicans ramp up criticism of President Obama's Iran response...
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**Latest on the economy; outlook bleak...
**President to sign tobacco legislation today...

(CBS)
PRESIDENT OBAMA AND IRAN: In an exclusive interview taped Friday with CBS News
Early Show co-anchor Harry Smith, Mr. Obama responded to critics claiming he hasn't spoken out forcefully enough in favor of those who've taken to the streets to protest the result of the recent presidential election in Iran.
"The last thing that I want to do," the president said, "is to have the United States be a foil for -- those forces inside Iran who would love nothing better than to make this an argument about the United States. That's what they do. That's what we've already seen. We shouldn't be playing into that. There should be no distractions from the fact that the -- Iranian people are seeking to -- let their voices be heard.
"Now, what we can do is bear witness and say -- to the world that the, you know, incredible demonstrations that we've seen is a testimony to -- I think what Dr. King called the -- the arc of the moral universe. It's long but it bends towards justice."
Mr. Obama also delivered a message to the regime in Tehran, noting to Smith that, "The world is watching. And how they approach and deal with people who are, through peaceful means, trying to -- be heard -- will I think -- send a pretty clear signal to the international community about -- about -- what -- Iran is and -- and is not.
" ... This is not an issue of the United States or the West versus Iran. This is an issue of the Iranian people. The fact that they are on the -- the streets under pretty severe duress -- at great risk to themselves -- is a sign that -- there's something -- in that society that wants to open up."
In the wide-ranging interview, the president had some tough talk for North Korea, sharp words for former Vice President Cheney, and defended giving the Fed new, broad powers to oversee the financial industry.
Click here for more from the interview.
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