The way to understand this is to look closely at Barack Hussein Obama, who praised Islam as the founder of the US traditions. Naturally, he would condemn the use of terms that stigmatize the Islamic faith, of which he is an adherent. This low bow to the King of Saudi Arabia, his speech in Cairo, his denigration of Netanyahu, in favor of Abbas -- all indicate where his sympathies lie.
Palestinians report IDF airstrikes on Islamic Jihad targets in southern Gaza Strip (Haaretz)
from the article: Obama bans terms `Islam` and `jihad` from U.S. security document