However, Obama said, McCain "still doesn't get it" regarding the economy.
At a town-hall event Friday in Minnesota, McCain took the microphone from a woman who had called Obama an Arab. McCain said, "No, ma'am," and he called Obama "a decent, family man."
McCain drew boos at the same event when he told a supporter who expressed fear at the prospect of Obama's election that the Democrat is a "person that you do not have to be scared of as president of the United States."
Those reassurances aside, McCain's TV ads continue to attack Obama sharply. Some hit his ties to a former radical who co-founded a violent anti-war group in the 1960s.
Obama noted that McCain campaign manager Rick Davis said this week "there's very little a candidate for president" can say about the dramatic stock market dive.
Obama said the McCain campaign, rather than focusing on the economy, has unleashed "a barrage of nasty insinuations and attacks," with more likely to come.
Speaking to several thousand people at a sunny morning rally in Philadelphia, Obama summarized his proposals for cutting taxes, spending more on alternative energy sources and taking other steps meant to boost the economy.
McCain campaign spokesman Tucker Bounds said some voters are using strong language because they are "frustrated knowing that Barack Obama's plans to raise taxes during a down economy," and his spending plans, are the "wrong answers to our economic crisis."
Democrats have carried Pennsylvania in recent presidential elections, although sometimes narrowly. McCain has campaigned aggressively in the state, but polls show Obama leading.
