"We will recover from this recession. But it will take time, it will take patience," he said in his second White House press conference.
In a bid to quell public fury over corporate bonuses, and criticism about his massive budget plan, he outlined the actions he was taking to fight the financial meltdown.
"We've put in place a comprehensive strategy designed to attack this crisis on all fronts," he said.
"It's a strategy to create jobs, to help responsible home-owners, to restart lending, and to grow our economy over the long-term. And we are beginning to see signs of progress."
The President has clearly decided to turn this moment of crisis into a moment of opportunity. No more bubble and bust! No more borrow and spend.Jon-Christopher Bua - Sky News Political Analyst
Mr Obama has faced a backlash over AIG's payment of $165m in executive bonuses after the insurance giant was bailed-out with $180bn of taxpayers' cash.
He was forced to repeatedly condemn the bonuses, while trying to fend off calls for Treasury Secretary Timothy Geithner's resignation for his handling of the affair.
Questioned about why he waited before slamming the AIG bonuses, he said: "It took us a couple of days - because I like to know what I'm talking about before I speak."
He stressed the importance for a consolidated approach to the world recession, but said he did not see the need for a global currency.
The objectives of next month's G20 summit in London, he said, would be to boost jobs and avoid protectionism.
This was an articulate performance by the President, and part of the offensive that's paid off over the past week...Sky's Adam Boulton
Sky's political editor Adam Boulton said Mr Obama's speech showed an increasing optimism and confidence that America is now moving in the right direction.
"This was an articulate performance by the President, and part of the offensive that's paid off over the past week of reassuring the American people that he knows what he's doing and why he's doing it," he added.
Anger over AIG bonuses
Mr Obama's comments come in a week in which his administration announced its latest measures to kick-start the US economy.
Low-interest loans and up to $100bn (£69bn) of bail-out money will be used to entice private investors into buying up $500bn (£345bn) of toxic assets.
By taking the bad debts off the banks' books, it is hoped it will encourage liquidity and get banks lending again.