Gretta's Got It: First Lady's Dress

WSVN -- Sure, the pressure may have been on the president as he faced the nation, but the first lady also had pressure facing down fashion.

First Lady Michelle Obama's fashion proving politically correct, and the fashion world applauded giving kudos to the non-traditional yellow, wool lace ensemble by designer Isabel Toledo.

Isabel Toledo: "It was a dream come true for me. It really was. I was so happy, really, really happy."

The Cuban-born designer has been designing clothes for 25 years with a resume that includes creative director for Anne Klein.

She sent sketches to Michelle Obama, created the dress and matching coat and then sat and waited till the moment of truth.

Reporter: "You found out when we found out?"

Isabel Toledo: "You got it. I got the same excitement, the same feeling you felt. I was feeling at the same time."

Reporter: "Oh, no. I think you were feeling something different. She was wearing your design."

Isabel Toledo: "I was so happy to see how beautiful she looked."

Fashion insiders say not since Jacqueline Kennedy has there been so much fuss over fashion.

Gretta Monahan, Seven's Style Expert: "It really had a really beautiful luminescence against the skin and yellow has been a color associated with optimism, gave her a very regal look."

But when she's not donning duds from J. Crew or get ups from the Gap, her fashion taste buds are satisfied by American designers.

Alina: "If you could talk to Michelle Obama, what would you say?"

Ruben Toledo: "I hope you were warm, and I hope you were comfortable and, boy, did you look great."

And great was an understatement to describe how the first lady looked at her first inaugural ball of the evening. The long white gown, the creation of up-and-coming designer Jason Wu.

Jason Wu: "It's thrilling. It's emotional. You know, it's inspiring, and for a young designer, I couldn't ask for anymore than this. This is my dream come true."

The gown made of ivory-silk chiffon and encrusted in crystal rhinestones with silver embroidery.

Jason Wu: "You know, I designed this dress with, you know, I wanted it, I wanted it to stand for everything she's about, her and President Obama is all about. It's about hope. It's about newness. It's about, it's all a little dreamlike."

Gretta Monahan: "I love that she wore white. It was that level of a celebration that she looked totally regal and beautiful."

Already stores are trying to cash in on the Michelle Obama craze. It took only hours for similar dresses to pop up in window displays at New York's top shops.