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"We must not let the extremists, whatever their faith, whatever their political persuasion, hijack the discourse and hijack the media. That only fuels greater extremism," he said.
The imam advocated creating a coalition of moderates from all religions to combat the extremists, but was vague on how exactly such a group would proceed.
Militancy is also a threat to Muslim governments and societies, and disrupts lives in the Muslim world to a great degree, he said.
"It is as much a threat to Muslim governments. It is as much a threat to Muslim societies. People in Pakistan are sick and tired of suicide bombers. People in Iraq are sick and tired of it," he said.
Rauf recounted a trip he once took to Egypt after a terrorist attack against a group of Swiss tourists, saying that individuals in that country were angry because tourism dried up and had a negative impact on the economy.
It is a misperception that Muslims are happy to see terror attacks, he said. "They're not. They're miserable."
Terrorists often use media coverage to air their message, and Rauf pondered what would happen if a news blackout occurred whenever there was a suicide bombing.
"What would happen to the extremists? They love the fact that the media gives them this coverage," he said, but added that he was not advocating the idea.
CRITICS
Monday's speech echoed earlier statements that moving the mosque would send the message to the Muslim world that American Muslims were under attack.
Speaking Sunday on NBC's "Meet the Press," former New York City Mayor Rudy Giuliani said, "Those are very very strong words. And to enter a sort of a suggestion of a threat into this, I worry about this as the kind of tactics he pursues."
Refuting those general criticisms but not responding to Giuliani specifically, the imam told ABC's "This Week" that he has never made any threats and that he is dedicated to peace.