Obama vows new start with Muslims

US President Barack Obama promised a new start with the Muslim world in his inauguration address on Tuesday.

"To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect," said Obama, who also vowed to responsibly pull US forces out of Iraq.

However, Obama warned that those who wage terrorism around the world that America's resolve remained strong.

Millions in attendance (Photo: Reuters)

"We say to you now that our spirit is stronger and cannot be broken. You cannot outlast us, and we will defeat you."

Obama was sworn-in as America's 44th president with millions in attendance at Washington, becoming the first black president of the United States.

In his speech, Obama promised bold, swift action to meet what he called the crisis of two wars and a badly weakened economy.

"Today I say to you that the challenges we face are real, they are serious and they are many," Obama said in a prepared text.

"They will not be met easily or in a short span of time. But know this, America -they will be met," he said in the speech delivered from the steps of the US Capitol.

Obama, a Democrat taking over the presidency from Republican George W. Bush, said the economic crisis buffeting the country was the result of "greed and irresponsibility on the part of some" and promised to keep a watchful eye to ensure that the market did not spin out of control.

"The state of the economy calls for action, bold and swift, and we will act," he said.