President Obama’s speech touched on many subjects of significance to the American people, including the fragile state of their economy and security matters such as the wars in Iraq and Afghanistan.
But he began by addressing his personal feelings on his election and the weight of responsibility he felt in taking on such an important office.
"I stand here today humbled by the task before us, grateful for the trust you have bestowed, mindful of the sacrifices borne by our ancestors," said President Obama.
The President went on to talk about the fears that many Americans have that their country is becoming less successful and diminishing as a global power.
He spoke of a "sapping of confidence across our land - a nagging fear that America's decline is inevitable, and that the next generation must lower its sights".
However, President Obama continued to say that America would respond to the challenges before it, and that the nation would pull together and overcome its problems by working together in a spirit of co-operation.
"On this day, we gather because we have chosen hope over fear, unity of purpose over conflict and discord," said the President.
After such a stirring speech, the world waits to see if America’s new president’s actions will match his lofty words and ideals.
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