Logo

WASHINGTON – In a first-day whirlwind, President Barack Obama showcased efforts to revive the economy on Wednesday, summoned top military officials to the White House to chart a new course in Iraq and eased into the daunting thicket of Middle East diplomacy.

"What an opportunity we have to change this country," said the 47-year-old chief executive, who also issued new ethics rules for his administration, hosted a reception at the presidential mansion for 200 inauguration volunteers and guests selected by an Internet lottery and even took the oath of office again after it was flubbed Tuesday.

After dancing at inaugural balls with first lady Michelle Obama past midnight, Obama entered the Oval Office for the first time as president in early morning. He read a good luck note left behind by President George W. Bush, then began breaking cleanly with his predecessor's policies.

Aides circulated a draft of an executive order that would close the detention facility at Guantanamo Bay, Cuba, within a year and halt all war crimes trials in the meantime.

Closing the site "would further the national security and foreign policy interests of the United States and the interests of justice," read the draft prepared for the new president's signature. A copy was obtained by The Associated Press, and an aide said privately that Obama would sign a formal order on Thursday.

Some of the 245 detainees currently held at Guantanamo would be released, while others would be transferred elsewhere and later put on trial under terms to be determined.

Obama's Cabinet was moving closer to completion.

At the Capitol, the Senate confirmed Hillary Rodham Clinton as secretary of state after a one-day delay forced by Republicans. The vote was 94-2, and spectators seated in the galleries erupted in applause when it was announced.

Treasury-designate Timothy Geithner emerged unscathed from his confirmation hearing, apologizing for having failed to pay $34,000 in taxes earlier in the decade.

To the evident anger of Sen. Patrick Leahy, D-Vt., chairman of the Senate Judiciary Committee, Republicans on the panel invoked long-standing rules to postpone a vote on Eric Holder's appointment as attorney general.

Counting Clinton, seven Cabinet members have been confirmed so far, as have the two top officials at the Office of Management and Budget.

Obama's schedule for the day included separate sessions on the economy and the wars in Iraq and Afghanistan.

The new president has pledged to take bold steps to revive the economy, which is struggling through the worst recession since the Great Depression. Last week, he won approval to use $350 billion in leftover financial industry bailout funds.

He presided over the White House meeting on the economy as the House Appropriations Committee moved toward approval of $358 billion in new spending, part of the economic stimulus package making its way to his desk.

The new commander in chief held his first meeting in the Situation Room, where he, Vice President Joe Biden and senior military and foreign policy officials discussed war in Iraq and Afghanistan. Obama campaigned on a pledge to withdraw U.S. combat forces from Iraq within 16 months, and to beef up the commitment in Afghanistan. Obama asked the Pentagon to do whatever additional planning necessary to "execute a responsible military drawdown from Iraq."

The new White House press secretary, Robert Gibbs, said Obama's phone calls to leaders in the Middle East were meant to convey his "commitment to active engagement in pursuit of Arab-Israeli peace from the beginning of his term."

Gibbs also that in conversations with Israeli, Palestinian, Egyptian and Jordanian leaders, the president emphasized he would work to consolidate the cease-fire between Israel and Hamas in Gaza.

Obama intends to name former Senate Majority leader George Mitchell as a special envoy to the region.

Not everything was new at the White House.

In the Oval Office, Obama worked at a desk built from the timbers of a British naval vessel, the HMS Resolute, and used off-and-on by presidents since the 1870s, including Bush. It also appeared that the carpet that Bush used in his second term, a yellow sunbeam design, was still in place.

If some of the furnishings remained in place, there was no doubt that the new president meant to fulfill his campaign promise of change.

"As of today, lobbyists will be subject to stricter limits than under any ... other administration in history," Obama told reporters as he signed the new rules. The restrictions included a ban on gifts by lobbyists to anyone serving in the administration.

He also imposed a pay freeze for about 100 White House aides who earn $100,000 or more. Its implementation was unclear, since none of them was on the payroll before Tuesday's noontime inauguration.

On Tuesday, within hours of Obama's inauguration, his administration froze last-minute Bush administration regulations before they could take effect.

Among them was an Interior Department proposal to remove gray wolves from Endangered Species protections in much of the northern Rocky Mountains, and a Labor Department recommendation that would allow companies that manage employee retirement plans to market investment products to plan participants.

On Wednesday night, Chief Justice John Roberts administered the oath to Obama at the White House — a rare do-over. The surprise moment came in response to Tuesday's stumble, when Roberts got the words of the oath a little off, which prompted Obama to do so, too.

The White House reassured that Obama has still been president since noon on Inauguration Day. But Obama and Roberts went through the drill again out of what White House counsel Greg Craig called "an abundance of caution."

Obama also dropped by a party for his staff at a packed DC Armory, telling his supporters that they deserve credit for his historic election victory, in part because they didn't know any better. He said they simply didn't know that a guy like him shouldn't win, that their fundraising model wasn't typical and that the odds were stacked against them.

Obama and his wife began their day at a prayer service that is traditional for the first business day of a new administration. They were joined in front-pew seats by Biden and his wife, Jill, as well as former President Bill Clinton and his wife, hours away from confirmation as the nation's top diplomat.

"Grant to Barack Obama, president of the United States, and to all in authority your grace and good will. Bless them with your heavenly gifts, give them wisdom and strength to know and to do your will," prayed the Rev. Andy Stanley, one of numerous clerics from several religions to speak.

WASHINGTON – Before a jubilant crowd of more than a million, Barack Hussein Obama claimed his place in history as America's first black president, summoning a dispirited nation to unite in hope against the "gathering clouds and raging storms" of war and economic woe.

On an extraordinary day in the life of America, people of all colors and ages waited for hours Tuesday in frigid temperatures to witness a young black man with a foreign-sounding name take command of a nation founded by slaveholders. It was a scene watched in fascination by many millions — perhaps billions — around the world.

"We gather because we have chosen hope over fear, unity of purpose over conflict and discord," the nation's 44th president said.

The presidency passed to Democrat Obama from Republican George W. Bush at the stroke of noon, marking one of democracy's greatest gifts: the peaceful transfer of power.

But a stark transfer all the same. In one of the new administration's first acts, Obama ordered federal agencies to halt all pending regulations until further review — this after Bush's final weeks raised heated debate over rushing new rules into effect on the way out the door.

And even though new White House aides struggled to find offices and work intercoms, an overhauled http://www.whitehouse.gov Web site was running under Obama's banner within minutes of his swearing-in. "Change has come to America," it declared.

Obama plunges into his new job in earnest on Wednesday after capping inaugural festivities at a national prayer service in the morning, meeting with his economic team and Iraq advisers and welcoming a stream of public visitors into the White House while Congress gives his economic revival plan a going-over and takes up the nomination of Hillary Rodham Clinton to be secretary of state. Her confirmation has been held up for now by Republican concern over the foundation fundraising of her husband, the former president.

The new president had been buoyant and relaxed through the three days of preinaugural festivities. But he seemed somber as he stood on the Capitol steps, placed his left hand on the Bible used by Abraham Lincoln and repeated the inaugural oath "to preserve, protect and defend" a Constitution that originally defined blacks as three-fifths of a person. A deafening cheer went up.

"What is required of us now is a new era of responsibility — a recognition, on the part of every American, that we have duties to ourselves, our nation, and the world, duties that we do not grudgingly accept but rather seize gladly," Obama said. "This is the price and the promise of citizenship."

The day's high spirits were jarred by sudden concern about the health of Sen. Edward M. Kennedy. The legendary Democrat, suffering from brain cancer, and was rushed from a Capitol luncheon in Obama's honor to a hospital. "My prayers are with him and his family," Obama said. Later, fellow Sen. John Kerry of Massachusetts said Kennedy was laughing and joking at the hospital and itching to get back to work.

On the inaugural parade route, Obama and his wife, Michelle, climbed out of the heavily armored presidential limousine and walked a few blocks along famed Pennsylvania Avenue, waving to adoring crowds under the watchful eyes of security agents.

Hours later, they put the day's formality behind them to swirl through 10 inaugural balls. With the president in white tie and the first lady in a white one-shouldered gown by 26-year-old New York designer Jason Wu, their first dance was to Beyonce singing the Etta James classic "At Last." "Tonight, we celebrate. Tomorrow, the work begins," Obama said at the Commander in Chief Ball.

Throughout his inaugural address, an 18-minute sermon on civic duty, Obama wove a thread of personal responsibility and accountability. A liberal Democrat proposing billions of dollars in new spending, Obama nonetheless spoke of the limits of government.

"It is the kindness to take in a stranger when the levees break, the selflessness of workers who would rather cut their hours than see a friend lose their job which sees us through our darkest hours," he said. "It is the firefighter's courage to storm a stairway filled with smoke, but also a parent's willingness to nurture a child, that finally decides our fate."

Obama's 10-year-old daughter, Malia, aimed a camera at her father as he spoke. Michelle leaned onto the edge of her seat, body tensed and brow knitted.

"Starting today, we must pick ourselves up, dust ourselves off and begin again the work of remaking America," Obama said.

He placed blame for the recent economic collapse not just on greed and irresponsibility "on the part of some" but also on the inability or unwillingness of everyone to move the country beyond an industrial-based economy — what he called "our collective failure to make hard choices and prepare the nation for a new age." With that, the 47-year-old former Illinois senator transformed himself — from a candidate claiming his campaign is about the voters to a president promising to put the nation in the people's hands.

Unlike most predecessors, Obama takes office with his agenda in many ways set for him.

An economy that seems more foreboding than at any inauguration since Franklin D. Roosevelt took office in 1933, with some 11 million people now out of work, and trillions of dollars of stock market investments lost. Two wars, one in Iraq that most of the country has long wanted over and another in Afghanistan that is spiraling downward and needs an overhaul. The continuing fear that another calamitous terrorist attack is not out of the question.

More inspirational than prescriptive, Obama's inaugural address only glancingly mentioned a series of promises from his campaign: to get the U.S. out of Iraq, stabilize Afghanistan, create jobs, "restore science to its rightful place," boost the use of alternative energy, address climate change, transform schools, manage government spending wisely and oversee a more bipartisan, less-divisive approach to policy-making.

To allies overseas eager for his leadership to replace Bush's, Obama had welcome words: "We are ready to lead once more."

His ascension to the White House was cheered around the world as a sign that America will be more embracing, more open to change. "To the Muslim world," Obama said, "we seek a new way forward, based on mutual interest and mutual respect."

Still, he bluntly warned, "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."

The day began well before dawn as people made their way downtown to secure spots from which to witness history, and it was extending well past midnight through the official balls and many more unofficial galas.

The drama exceeded even the breathless buildup of recent days' nearly nonstop discussion on TV, blogs, podcasts and text messages. Not only heavily policed and barricaded Washington but much of the country virtually halted in its tracks — even, albeit briefly, inside the casinos of Las Vegas.

The nation had celebrated 55 inaugurations before, but none like the one that made a president out of the son of Kenya and Kansas, a man who rose to America's highest office largely untested at executive leadership, his political experience encompassing only four years in the U.S. Senate and eight in the state legislature of his home state of Illinois.

Blacks especially powered the jubilation that was thick in the chilly air. Even though Obama didn't give the topic of race, his or others, much treatment in either his campaign nor his inaugural, blacks poured into Washington from all over to watch firsthand as one of their own at last shattered a painful racial barrier.

"It almost leaves me speechless," said 69-year-old Tony Avelino, who traveled from Brea, Calif. "This situation is so emotional it's basically an unreal experience," added 56-year-old Cleveland Wesley, on the Mall from Houston with his wife as the sun rose.

Many others also see in Obama fresh reason for optimism at a time of great national insecurity. Or a chance for rest from the eight acrimonious years of the Bush presidency. Or even a turn toward modernity, as a country hurtling into new ways of communicating, connecting and conducting business chose a man more comfortable in that world than any leader before him.

Excitement over Obama's young, camera-ready family and the thought of Malia Obama and her sister, 7-year-old Sasha, turning the stately White House into a children's playroom also figured prominently in the day.

Among the feverishly discussed questions: What would fashion-forward Michelle Obama wear, information kept as a closely held secret? The shimmering gold brocade sheath dress and matching coat that she chose for the daytime sparked immediate water-cooler discussion, especially when she paired the outfit with green gloves against the cold.

In a country nearly evenly divided between Democrats and Republicans, it was notable that protests were nearly unseen, a remarkable shift from the two Bush inaugurations that were marked by boisterous demonstrations. One group of about 20 people from a Baptist church in Kansas demonstrated with anti-gay slogans.

With his White House campaign and landslide November victory built in part on his rhetorical gifts, Obama sought to provide reassurance for the future while compelling listeners to sacrifice.

He articulated eloquently the deeper effect on the American psyche of the problems of war and recession: "a nagging fear that America's decline is inevitable, and that the next generation must lower its sights."

Not so, said Obama. But he cautioned that the effort will require all citizens, no matter party, age, skin color, or status, to get to work.

"The time has come to set aside childish things," he said, invoking the Bible. "Greatness is never a given. It must be earned."

Bush, the man who has led the nation the past eight years, hosted the Obamas for coffee in the morning, accompanied them to the Capitol and sat tightlipped in the front row for Obama's swearing-in and speech.

Obama thanked Bush for his service as president and never directly criticized him. But he also repeatedly talked of the need to abandon current practices, whether "the petty grievances and false promises, the recriminations and worn out dogmas, that for far too long have strangled our politics," the lack of a watchful enough eye on financial markets, or what he called a false choice between safety and ideals — a reference to brutal interrogation practices and other actions taken by the Bush administration in the wake of the Sept. 11, 2001, terrorist attacks.

"With hope and virtue, let us brave once more the icy currents, and endure what storms may come," Obama said.

Afterward, he escorted his predecessor to a helicopter and Bush flew with his family first to Andrews Air Force Base for a private departure ceremony, then on to a welcome rally in Midland, Texas and finally, by nightfall, his ranch near Crawford, Texas. As the architect of two unfinished wars and the man in charge at a time of economic calamity, the now ex-president left Washington under the cloud of approval ratings hovering at historic lows. People in the crowd booed when Bush's image was flashed on jumbotrons and one contingent near the Capitol sang "Na-na-na-na, hey, hey, goodbye" in a jeering farewell.

For all the new president's call to joint effort, it is political reality that it will largely be up to Obama himself to meet soaring expectations — both those he has created for himself and those others have placed on him unbidden.

In the Oval Office awaits the workaday, hard-nosed business of the daily governance of a nation of 304 million. And while Washington celebrated, events kept moving: Wall Street slid, news surfaced that U.S. carmaker Chrysler could be purchased in part by Italian auto giant Fiat, and prosecutors at the U.S. detention center at Guantanamo Bay, Cuba, sought to suspend all war-crimes trials pending Obama's guidance.

Congress already has given Obama $350 billion in new financial-industry bailout money and is fast-tracking a massive economic stimulus bill to be worth $825 billion or more. And Bush has ordered 30,000 more U.S. troops to go to Afghanistan this year, adding to 32,000 already there. But these moves are hardly the last word on the big issues of the day.

And some of Obama's attention to even those things will undoubtedly be deferred to crises — a natural disaster, an overseas conflagration — that can pop onto the scene unexpectedly and consume enormous amounts of White House energy.

His transition also produced some missteps that raised questions about whether Obama's highly disciplined, perfectionist organization that proved brilliant at winning an election will be equally brilliant at governing.

Obama's team overlooked known problems in the backgrounds of two Cabinet nominees — Bill Richardson for Commerce and Timothy Geithner for Treasury. They also flubbed the introduction to Congress of Leon Panetta as CIA director. Obama also was tripped up by controversy surrounding the appointment of his successor in the Senate.

WASHINGTON – Two days from the White House, President-elect Barack Obama joined a vast throng Sunday at a joyous pre-inauguration celebration staged among marble monuments to past heroes. "Anything is possible in America," declared the man who will confront economic crisis and two wars when he takes office.

"Despite the enormity of the task that lies ahead, I stand here today as hopeful as ever that the United States of America will endure — that it will prevail, that the dream of our founders will live on in our time," the president-elect said at the conclusion of a musical extravaganza that featured U2, Beyonce, Bruce Springsteen and a host of other stars.

Obama and his family held the seats of honor at the event, and a crowd of tens of thousands spilled from the base of the Lincoln Memorial toward the Washington Monument several blocks away in the cold, gray afternoon of mid-January.

It was the high point of a full day of pre-inaugural events that included a wreath-laying at the Tomb of the Unknowns at Arlington National Cemetery and a morning church service where children recalled the life of civil rights leader Martin Luther King Jr.

Obama's motorcade drew ever-larger crowds as the day wore on and he and his wife, Michelle, and their children Sasha and Malia crisscrossed the city.

"Just another typical Sunday," deadpanned the Rev. Derrick Harkins, pastor at the Nineteenth Street Baptist Church, where the soon-to-be first family prayed.

Of course it was anything but — a run-up, in fact, to the first inauguration of an African-American president in a nation founded by slave-owners.

Obama's aides said he was readying an inaugural address that would stress twin themes of responsibility and accountability, and they predicted he would devote his first week in office to economic recovery, setting in motion a 16-month troop withdrawal from Iraq and decreeing a code of ethics for his administration.

With the economy weak and growing weaker, banks in trouble and joblessness rising, Obama's team was careful to warn against any expectation that he would be a miracle worker once in office. "I think it's fair to say that it's going to take not months but years to really turn this around," said David Axelrod, a political strategist expected to have White House space mere paces from the Oval Office.

Obama said as much in his own brief remarks. "I won't pretend that meeting any one of these challenges will be easy. It will take more than a month or a year, and it will likely take many," he said.

He stood alone at the base of the steps before the statue of a seated Lincoln looking out at a crowd every bit as large as the one King addressed a generation earlier in his "I have a dream" speech that was a defining moment of the civil rights era.

An even larger audience is forecast for the inauguration outside the Capitol on Tuesday, with estimates running into the millions. Agencies in charge of logistics and security said they would enforce a ban on personal auto traffic across the Potomac River bridges from Virginia into Washington and seal off a large portion of the downtown area. Access to buildings along the Inaugural parade route down Pennsylvania Avenue was limited to those who gained Secret Service approval in advance.

Obama's day began at the Tomb of he Unknowns at Arlington National cemetery, where he and Vice President-elect Joseph Biden laid a wreath in memory of fallen heroes. The two men placed their hands over their hearts as a uniformed bugler played taps in a somber opening to a festive day.

The scene was quite different at the church a few miles away, where the congregation erupted in applause when Obama and his family walked to their seats.

"Understand that God has prepared you, and God has placed you, and God will not forsake you," Harkins told the incoming president.

Children sang and spoke selected readings that recalled King, killed in 1968.

"Martin Luther King walked so that Barack Obama could run," said one boy. "Barack Obama ran so that all children could fly," added another, standing a few feet away from the first African-American ever elected president.

At the Lincoln Memorial a few hours later, King's son, Martin Luther King III, had a brief speaking role.

For the most part, the program was a festival of music, the songs chosen to make their points. Mary J. Blige sang, "Lean on Me," Springsteen performed "The Rising," and Obama mouthed the words as 89-year-old Pete Seeger pitched in with "This Land is Your Land."

Many in the crowd sang along with Beyonce's soulful finale, "America the Beautiful."

In film clips at earlier moments, Obama was cast as heir to Franklin Delano Roosevelt, John F. Kennedy and even Lincoln, who the president-elect said was "the man who in so many ways made this day possible."

As Obama moved around town in a pre-inaugural motorcade, his aides blanketed Sunday's interview programs.

With the nation facing the most difficult economic crisis since the Great Depression, they all agreed that recovery was the principal challenge facing the new president.

"What's important ... is ensuring that those that have had the short end of the stick for the last few years — make sure that they get the help that they need, that this administration begins to create the jobs and give some financial stability to families so that they can feel hopeful about going forward," said Robert Gibbs, who will serve as Obama's White House press secretary.

"Three million, 4 million jobs is going to make a very big difference," said Lawrence Summers, a top economic adviser to the incoming president, referring to the goal Obama has set. "It all depends on psychology, but we are going to be leaning forward throughout this administration. The president's made it clear that our errors are not going to be of standing back."

The Democratic-controlled Congress has already made a quick start on the president's recovery program, clearing the way for use of the second $350 billion for the financial industry bailout created last fall, and launching an $825 billion stimulus measure. Democratic leaders have pledged to have the legislation ready for Obama's signature by mid-February.

House Speaker Nancy Pelosi, D-Calif., also endorsed Obama's call for a summit meeting to begin controlling spending on huge government benefit programs such as Social Security, Medicare and Medicaid. She said even benefit cuts should be included as an option for discussion. "You put everything on the table. The only thing we didn't want to put on the table is eliminating" the programs, she added.

The Senate appears ready to confirm several of Obama's Cabinet appointees as soon as he signs the formal nomination paperwork on Tuesday, although not everything has been smooth for Obama and his transition team.

Treasury Secretary-designate Timothy Geithner's confirmation has been delayed for at least a few days because of his disclosure that he had failed to pay some federal taxes earlier in the decade. Bill Richardson withdrew as Obama's commerce secretary choice because of a grand jury investigation in New Mexico, where he is governor, and Obama himself was tripped up by controversy surrounding the appointment of his successor in the Senate.

Sen. Roland Burris, D-Ill., was sworn in Thursday — and swiftly voted with Obama to release the bailout funds. The president-elect and Senate Democrats had initially balked at allowing him to take the seat, saying his appointment was tainted because Gov. Rod Blagojevich faces criminal charges that he sought something in return for appointing Obama's successor.

Incoming White House chief of staff Rahm Emanuel said in a televised interview that in his conversations with the governor, Blagojevich did not seek anything improper.