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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 point out Explosion In Eastern Ukraine; New Episodes Of "Harry And Meghan" Explore Split From Royal Family. This can be a RUSH TRANSCRIPT. THIS COPY Is probably not IN ITS Final Form AND Could also be Updated. WOLF BLITZER, CNN HOST: Happening now, recession fears grip Wall Street, inventory prices tumbling, as the Federal Reserve's downbeat new economic forecast begins to sink in. Also, this hour, a CNN exclusive, outgoing House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer of their first joint sit-down interview. They're weighing in on whether or not President Biden ought to run once more and whether or not Trump would possibly win. And Russia is ramping its threats as the U.S. Patriot missile defenses to Ukraine. Moscow now warning of what they're calling unpredictable consequences. Tonight, the Pentagon is firing back. Welcome to our viewers here in the United States and world wide. I'm Wolf Blitzer. You're within the Situation ROOM. We start with the dramatic downturn in inventory prices here in the United States as fears of recession rise. The Dow Jones Industrials closing down practically 765 factors, investors reacting to a double whammy. The U.S. saw a much bigger than expected drop in retail sales last month, that just a day after the Federal Reserve forecast very restricted economic development next yr and sign more curiosity rate hikes are indeed coming. Meantime, up on Capitol Hill, lawmakers, they're scrambling huge time right now to try to go legislation to keep the U.S.

Let's go to CNN Congressional Correspondent Jessica Dean. She's joining us stay from Capitol Hill. So, Jessica, what is the state of play on this critically essential legislation? JESSICA DEAN, CNN CONGRESSIONAL CORRESPONDENT: Wolf, proper now, the Senate has simply begun a series of votes for the National Defense Authorization Act. That's one of the should-do things they want to finish this week. It sets the policy agenda and authorizes funding for the Department of Defense. So, we anticipate that to move during these series of votes. Then they want to show their eyes to the quick-term funding bill. And remember, tomorrow is the deadline that they must get that done. At this point, there aren't any indications there can be a authorities shutdown. We do anticipate they may get that performed. But proper now, they're wrestling with simply sort of how they're going to vote in terms of how they're going to set that vote up, the time agreements, things like that, these last-minute particulars that they are trying to work out. So, we're conserving an eye on that. But, again, at this level, no indications of a authorities shutdown, we do anticipate that they are going to go that short-term funding invoice, which has already handed the House, which implies it then will go to President Biden's desk. So, then that sets them up for this larger spending package deal that we 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 big crunch.

Now, one title I didn't embody there, House Minority Leader Kevin McCarthy, who has come out as a, quote, hell no on that large spending package. And it's attention-grabbing to see himself -- distancing himself from where Mitch McConnell is on this. And, actually, we heard from Senator Lindsey Graham earlier right this moment. He is anticipated to back that bigger funding bill. He mentioned that the House should not be ready round. There has been some discuss from House GOP members that they want to wait till they take management of the House to deal with this larger spending package deal. Graham is saying, they cannot even get a speaker elected, a lot less move a bill. Those have been his words. And so then we turn to the McCarthy of it all and him making an attempt to turn out to be speaker. His eyes are on January 3rd and attending to 218 votes, he remains to be coping with Republican hardliners who're very towards him becoming speaker. And we all know that some moderates in the House, some moderate Republicans, have began floating concepts of how they may push again towards these hardline Republicans and actually assist McCarthy get to the end line on this. One concept that was floated, in response to our reporting, is to kick them off committees. Again, no one agreeing on that, however those are a few of the concepts that are being floated proper now, as McCarthy tries to get that speakership. And average Republicans attempt to really flex their muscles a bit bit within the House, but it surely remains to be seen, Wolf, if that can truly occur.

Again, type of taking us back to where all of us started. What we're now waiting on is to get the quick-term funding bill handed by means of the Senate after which the eyes to turn to that greater funding invoice. That is what we control for subsequent week, Wolf. BLITZER: Yes, so, so necessary. All proper, Jessica Dean reporting for us, thank you very much. 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 primary time Pelosi and Schumer actually sat down together for an interview. Tell us the way it went. JAMIE GANGEL, CNN Special CORRESPONDENT: It's outstanding as a result of they've labored together for 35 years. They completed each other's sentences. They speak on the telephone four occasions a day. We went to the place they needed to go, their favorite Chinese restaurant, the place they've been having meals collectively all these years. We talked about all the pieces, from January sixth, how they really feel about Donald Trump. GANGEL: There is a CNN poll that just got here out that reveals there's little appetite on each sides for a Biden-Trump rematch in 2024. You're stepping aside. Do you think President Biden ought to step apart for a younger generation? REP. NANCY PELOSI (D-CA): I feel President Biden has executed a wonderful job as president of the United States. I hope that he does seek re-election. He's a person with an important vision for our country. He's been concerned for a long time, so his nice knowledge of the issues and the challenges we face.