The Iowa tea party leader shouted questions at the president about an alleged comment made by Vice President Joe Biden during closed-door debt ceiling meetings.
"He said we were acting like terrorists," Iowa tea party activist Ryan Rhodes said, confronting the president after the Decorah town hall as Obama worked a rope line of audience members. "What we stand for is limited government and a balanced budget," Rhodes continued.
Obama countered that Biden was making the point that almost failing to raise the debt ceiling was irresponsible.
"He wasn't objecting to the balanced budget amendment, he was objecting to us almost defaulting," Obama said.
A woman also jumped in on the debate.
The president kept his cool, answered them, and continued shaking hands with the crowd.
But when Rhodes persisted, Obama said, "It doesn't sound like you are interested in listening."
The Associated Press contributed to this report.