The Chairman of the Muslim Community Reference Group, Ameer Ali, says Mr Bush's ill-advised comments will inflame anti-Muslim sentiment.
Mr Ali says such remarks could provoke a religious war against Islam and Muslims.
“President Bush immediately castigated these people as Islamic fascists. They are making this mistake over and over again. There are some people who are taking law into their own hands, they are trying to create havoc, we should bring them to justice, no question about it. But when you describe them as Islamic fascists, you are criticising the entire Muslim population, which is again making things worse,” Mr Ali said.