Treasury Secretary Jack Lew on Thursday said House and Senate budget negotiators should replace the sequester with other spending cuts.
Lew said the sequester has been a drag on the economy, and that it should be replaced with longer-term measures to reduce spending.
“If we can agree on sensible medium and long-term policies to replace these cuts, we can do something good for the economy now,” Lew said at a policy conference hosted by the liberal Center for American Progress.
“We need to replace harmful cuts known as sequestration with common-sense measures that rein in spending,” he said.
Lew did not offer any specifics on what long-term measures he would support for reducing spending, though the White House has previously telegraphed some changes to entitlement programs that it could support.
The White House and Democrats, however, have always insisted that tax hikes be a part of any budget discussion that would reduce entitlement spending, something Republicans have rejected.