U.S. Federal Reserve Chairman Ben Bernanke says the U.S. economy is still very challenging and unemployment is still high.

Bernanke told U.S. news channel CNBC on Tuesday that the U.S. is still dealing with some important economic challenges in the short run. But he added the longer-term prospects for the country are "very good" and the economy will ultimately normalize.

In regards to some politicians’ demand for a return to the gold standard, Bernanke warned such a move would handicap the government’s ability to address economic conditions.

The Fed chairman said some U.S. financial institutions might suffer losses due to the euro zone crisis, but major Wall Street banks are not vulnerable to possible blows from Europe.