KEY POINTS:
WASHINGTON - Barack Obama promised to free Americans from the grip of its profound economic troubles and steer away from wars in two distant lands after his inauguration as US president today.
The 47-year-old Obama assumed power over a country longing for change after former President George W. Bush's eight divisive years in the White House, an era that witnessed the Sept. 11, 2001 terror attacks, the beginning of wars in Afghanistan and Iraq and an economic collapse not seen since the 1930s Great Depression.
"Today I say to you that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this, America - they will be met," Obama said in his first address to the nation as its new leader.
Speaking to a massive crowd of over one million that spread across the massive National Mall from the Capitol toward the Lincoln Memorial, Obama recalled the words of George Washington, America's first president, enjoining Americans against faint-heartedness "in this winter of our hardship."
"With hope and virtue, let us brave once more the icy currents, and endure what storms may come," the new president said in his 18 1/2-minute inaugural address. "Let it be said by our children's children that when we were tested we refused to let this journey end, that we did not turn back nor did we falter; and with eyes fixed on the horizon and God's grace upon us, we carried forth that great gift of freedom and delivered it safely to future generations."
Obama pledged bold and swift action on the "badly weakened" US economy, a top priority as he works with the US Congress on an estimated US$850 billion ($1.6 trillion) economic stimulus package aimed at jolting the economy back to life.
He also acknowledged the historic nature of his inauguration as leader of a nation with a deeply troubled racial past.
"This is the meaning of our liberty and our creed - why men and women and children of every race and every faith can join in celebration across this magnificent mall, and why a man whose father less than sixty years ago might not have been served at a local restaurant can now stand before you to take a most sacred oath."
Obama also vowed to lift America's standing in the world, pledging to take America in a new direction from the previous Bush administration.
"Our time of standing pat, of protecting narrow interests and putting off unpleasant decisions - that time has surely passed. Starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America."
Obama also took the opportunity to send a strong foreign policy message, promising the world a new America that listens to all voices. But he vowed to spare nothing to keep America safe, addressing the Islamic world directly.
Muslim world
"To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect," Obama said. "To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West - know that your people will judge you on what you can build, not what you destroy."
"To those who cling to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history; but that we will extend a hand if you are willing to unclench your fist."
With his hand on the Bible used in the 1861 inauguration of Abraham Lincoln, the country's 16th president and Obama's inspiration, the new president ascended to the pinnacle of American political power to confront perils seldom faced by a new president.
Obama's wife, Michelle, the nation's new first lady, held the Lincoln Bible as Supreme Court Chief Justice John Roberts administered the 35-word oath of office taken by every American president dating to George Washington.
Joe Biden was also sworn in as the 47th vice president of the United States. The 66-year-old has served 36 years as a Delaware senator.
After the inauguration former President George W. Bush and his wife, Laura, boarded a plane in suburban Maryland for their flight back to Texas after eight years in the White House.
Bush and his wife Laura got on a helicopter stationed alongside the U.S. Capitol. The new president and his wife walked them to the chopper - keeping with tradition - to see them off.
The Bushes are first headed to Midland, Texas, for a homecoming celebration. Then they'll go to their ranch in Crawford for their first night as private citizens again.
Oval Office
Bush left a note for Obama in the top drawer of his desk in the Oval Office, following tradition.
White House press secretary Dana Perino said the theme of the message - which Bush wrote on Monday - was similar to what he has said since election night: that Obama is about to begin a "fabulous new chapter" in the United States, and that he wishes him well.
The unfinished business of the Bush administration thrusts an enormous burden onto the new administration, though polls show Americans are confident Obama is on track to succeed. He has cautioned that improvements will take time and that things will get worse before they get better.
Obama and Bush arrived at the US Capitol at 11am local time, accompanied by their wives, Michelle and Laura, in a heavily armoured Cadillac limousines put into service for the ride from the White House to the inauguration ceremony.
They were joined by Biden and Vice President Dick Cheney and their wives, Jill and Lynne. Cheney pulled a muscle in his back on Monday and was in a wheelchair.
Remarkable ascent
Today's ceremony was the culmination of a remarkable ascent for the 47-year-old Democrat, who moves into the Oval Office as the nation's fourth youngest president. In less than five years, he rose from a little-known Illinois state lawmaker to the nation's highest office, persuading Americans that despite his relative inexperience, he could turn around the economy, end the Iraq war and restore US standing in the world.
A gifted, inspirational speaker, Obama has raised the hopes of millions as he outlined a new course for the United States. He promised to emphasize diplomacy, seek global solutions to climate change, reject torture and shut down the Guantanamo Bay prison.
Obama's presidency puts Democrats firmly in charge of Washington. They will control both chambers of Congress and the White House for the first time since 1994.
Though the new president faces monumental challenges, he should face an extended honeymoon as he takes over from Bush, who leaves Washington as one of the nation's most unpopular and divisive presidents.
The 43rd president's approval ratings, which soared after Sept. 11, plummeted over his handling of the Iraq war, his slow response to Hurricane Katrina and the economic meltdown.
Pre-inauguration polls show Americans believe Obama is on track to succeed and express confidence the new president can turn the economy around. But Obama has cautioned that recovery needs time, and that things will get worse before they get better.
More than 10,000 people from all 50 states - including bands and military units - were assembled to follow Obama and Biden from the Capitol along the 1.5-mile (2.4-kilometer) inaugural parade route down Pennsylvania Ave., concluding at a bulletproof reviewing stand in front of the White House.
-AP
