Isn't that nice? That's nice. Yeah. Then they gave Vice President Joe Biden the Indian name "Big Chief Running Mouth."
But give O'Brien credit for leading off his monologue with the Native news. Except for the joke, the mention was respectful. You don't get any sense that he's mocking Indians, which is common enough among humorists.
For more on the subject, see "Indian Giver" Joke on Tonight Show and Redskins Joke on Tonight Show.