(CNN) - Sen. Barack Obama on Sunday charged that Sen. John McCain's campaign is launching "Swift boat-style attacks" on him instead of addressing the country's problems.
Watch: Obama fights back
"Sen. McCain and his operatives are gambling that they can distract you with smears rather than talk to you about substance. They'd rather try to tear our campaign down than lift this country up," Obama said at an event in Asheville, North Carolina.
"That's what you do when you're out of touch, out of ideas, and running out of time," he said.
The comments come a day after Alaska Gov. Sarah Palin, McCain's running mate, claimed that Obama associated "with terrorists who targeted our own country."
The McCain campaign shot back on Sunday, saying its accusations are "true facts," and not "smears."
"The last four weeks of this election will be about whether the American people are willing to turn our economy and national security over to Barack Obama, a man with little record, questionable judgment, and ties to radical figures like unrepentant domestic terrorist William Ayers," McCain spokesman Tucker Bounds said in a statement.