MR. OBAMA: Right, because of the sequester.

NYT: -- that you and Congress agreed to -- right -- and some of the laws -- the payroll tax cut, and the increase in upper-end taxes to some extent -- but all of those things are by any economist’s measure a drag on the economy. There’s not a day goes by I don’t get some analyst saying that -- and that the Fed is pursuing expansionary policies to offset that. How can you -- how are you going to -- what exactly can you do between now and the end of the year to overcome the Republicans’ opposition and change that, to end sequester?

MR. OBAMA: Well, let me back up, Jackie. First of all, as the economy got stronger during the course of my presidency, I had always committed to a responsible reduction in the deficit. I think that was the smart thing to do, the right thing to do, and good for our growth. And if we’re growing faster, if businesses and the markets have more confidence, then ultimately that benefits middle-class families as well. So I make no apologies for putting forward budgets consistently that, as I had promised, would gradually reduce the deficit.

Now, the sequester I did not want to be in place. When you say I agreed to it, what happened, as you will recall, in 2011 is, is that we had the prospect of either default or a willingness on the part of Republicans and Democrats to spend a year and a half trying to come up with a sensible way to reduce the deficit. The sequester was supposed to be something that was so damaging to the economy that both parties would want to avoid it. The fact that Republicans embraced the sequester as what they consider a win during the course of this year, despite all the damage that they said they wanted to avoid, for example, to our military, is different from me agreeing to the sequester. All right? So that’s point number one.

Point number two, every economist will tell you that if we are being smart about growth and we’re thinking about jobs and we’re thinking about the middle class, but we’re also thinking about fiscal responsibility, then what we should be doing is making sure that the drop-off in government spending on vital things like education and infrastructure don’t go down too fast, and that rather we look at what the real problem is, which is long-term health care costs.

Because of the Affordable Care Act and a lot of changes that are taking place out there among providers, we’re starting to see health care costs slow. That’s a positive. If we can build on that, then we can capture the same amount of savings that we’re capturing through the sequester and use those to make sure that we’re not cutting vital investments that I talked about today, and we can help middle-class families.

Now, I think there are probably going to be 15 different ways for you guys to ask me the same question, which is, “But there’s Congress.” (Laughter.) More specifically, “There’s the House Republicans, and what are you going to do about that?”

NYT: Who are still embracing sequestration and who are still willing to use the debt limit to go to the mat.