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Congress Scrambling To Pass Legislation To maintain Government Funded; Northeast Braces For Snow, Ice And Rain From Deadly Stormy System; New Vide Appears To indicate Explosion In Eastern Ukraine; New Episodes Of "Harry And Meghan" Explore Split From Royal Family. This can be a RUSH TRANSCRIPT. THIS COPY May not be IN ITS Final Form AND Could also be Updated. WOLF BLITZER, CNN HOST: Happening now, recession fears grip Wall Street, stock prices tumbling, because the Federal Reserve's downbeat new financial forecast begins to sink in. Also, this hour, a CNN unique, outgoing House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer in their first joint sit-down interview. They're weighing in on whether President Biden ought to run again and whether Trump may win. And Russia is ramping its threats because the U.S. Patriot missile defenses to Ukraine. Moscow now warning of what they're calling unpredictable penalties. Tonight, the Pentagon is firing back. Welcome to our viewers here within the United States and around the world. I'm Wolf Blitzer. You're in the Situation ROOM. We start with the dramatic downturn in stock prices right here within the United States as fears of recession rise. The Dow Jones Industrials closing down almost 765 factors, investors reacting to a double whammy. The U.S. saw a a lot larger than expected drop in retail sales final month, that only a day after the Federal Reserve forecast very restricted economic progress next 12 months and sign extra interest fee hikes are certainly coming. Meantime, up on Capitol Hill, lawmakers, they're scrambling large time proper now to attempt to go legislation to maintain the U.S.
Let's go to CNN Congressional Correspondent Jessica Dean. She's joining us reside from Capitol Hill. So, Jessica, what's the state of play on this critically important laws? JESSICA DEAN, CNN CONGRESSIONAL CORRESPONDENT: Wolf, proper now, the Senate has simply begun a sequence of votes for the National Defense Authorization Act. That's one of the should-do issues they need to finish this week. It sets the policy agenda and authorizes funding for the Department of Defense. So, we expect that to go during these sequence of votes. Then they need to show their eyes to the quick-term funding invoice. And remember, tomorrow is the deadline that they should get that achieved. At this level, there are not any indications there shall be a government shutdown. We do anticipate they may get that executed. But proper now, they're wrestling with just kind of how they're going to vote by way of how they're going to set that vote up, the time agreements, issues like that, these final-minute details that they try to work out. So, we're preserving a watch on that. But, once more, at this level, no indications of a authorities shutdown, we do expect that they may cross that short-time period funding invoice, which has already handed the House, which means it then will go to President Biden's desk. So, then that sets them up for this bigger spending package that we all know that Senate Minority Leader Mitch McConnell, Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi all wish to get completed. That's the subsequent huge crunch.
Now, one title I did not include there, House Minority Leader Kevin McCarthy, who has come out as a, quote, hell no on that massive spending package deal. And it's attention-grabbing to see himself -- distancing himself from where Mitch McConnell is on this. And, in truth, we heard from Senator Lindsey Graham earlier at the moment. He is anticipated to back that bigger funding invoice. He stated that the House shouldn't be waiting around. There was some talk from House GOP members that they need to attend till they take management of the House to deal with this larger spending package deal. Graham is saying, they can't even get a speaker elected, a lot less cross a invoice. Those had been his words. And so then we turn to the McCarthy of it all and him making an attempt to become speaker. His eyes are on January third and getting to 218 votes, he remains to be coping with Republican hardliners who're very against him becoming speaker. And we know that some moderates in the House, some average Republicans, have started floating concepts of how they may push back in opposition to these hardline Republicans and actually assist McCarthy get to the end line on this. One concept that was floated, in accordance with our reporting, is to kick them off committees. Again, nobody agreeing on that, however these are a number of the concepts which are being floated right now, as McCarthy tries to get that speakership. And moderate Republicans strive to essentially flex their muscles a bit bit within the House, but it remains to be seen, Wolf, if that may truly happen.
Again, form of taking us again to where all of us started. What we're now waiting on is to get the short-term funding invoice handed by way of the Senate after which the eyes to turn to that greater funding invoice. That is what we keep an eye on for next week, Wolf. BLITZER: Yes, so, so necessary. All proper, Jessica Dean reporting for us, thank you very a lot. Now to CNN exclusive interview with the top Democrats in Congress. The outgoing House speaker, Nancy Pelosi, and the Senate majority chief, Chuck Schumer, they sat down with CNN Special Correspondent Jamie Gangel, who joins us now. Jamie, this was the first time Pelosi and Schumer really sat down together for an interview. Tell us the way it went. JAMIE GANGEL, CNN Special CORRESPONDENT: It's outstanding because they've worked collectively for 35 years. They finished one another's sentences. They speak on the phone four times a day. We went to the place they wished to go, their favorite Chinese restaurant, the place they've been having meals together all these years. We talked about every thing, from January sixth, how they really feel about Donald Trump. GANGEL: There is a CNN poll that simply got here out that exhibits there's little appetite on each sides for a Biden-Trump rematch in 2024. You're stepping apart. Do you suppose President Biden should step aside for a youthful generation? REP. NANCY PELOSI (D-CA): I feel President Biden has done an excellent job as president of the United States. I hope that he does seek re-election. He's an individual with an awesome vision for our nation. He's been involved for a very long time, so his nice data of the issues and the challenges we face.