Obama takes historic spot as first black president

WASHINGTON — Before a jubilant crowd of more than a million, Barack 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 the moment as a young black man with a foreign-sounding name took 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.

Obama plunges into his new job in earnest on Wednesday, meeting with his economic team and Iraq advisers 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.

Tuesday was a day of high spirits — jarred by sudden concern about the health of Sen. Edward M. Kennedy, a legendary Democrat who is suffering from brain cancer and was rushed to a hospital from a Senate luncheon after the swearing-in. "My prayers are with him and his family and (Kennedy's wife) Vicki," 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.

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 a world 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."

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.

As one of his first official acts, Obama signed a presidential proclamation declaring Tuesday a "National Day of Renewal and Reconciliation." He also officially nominated his Cabinet, except for Commerce and Defense secretaries. Defense Secretary Robert Gates, a holdover from the Bush administration, does not need to be renominated.

The Senate convened to quickly confirm six members of the Cabinet but put off for a day the approval on his choice to be secretary of state, Hillary Rodham Clinton, because Republican Sen. John Cornyn of Texas objected to the unanimous vote.

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 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.

Associated Press Writers Alan Fram, Donna Cassata, Gillian Gaynair, Ricardo Alonso-Zaldivar, Kevin Freking, Ed Tobias, Ben Evans, Seth Borenstein and H. Josef Hebert contributed to this report.