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Congress Scrambling To Pass Legislation To keep 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 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, because the Federal Reserve's downbeat new financial forecast begins to sink in. Also, this hour, a CNN exclusive, outgoing House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer in their first joint sit-down interview. They're weighing in on whether or not President Biden ought to run again and whether Trump would possibly 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 consequences. Tonight, the Pentagon is firing back. Welcome to our viewers here in the United States and around the world. I'm Wolf Blitzer. You're within the Situation ROOM. We begin 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 points, buyers reacting to a double whammy. The U.S. saw a much bigger than anticipated drop in retail sales last month, that only a day after the Federal Reserve forecast very limited economic development next 12 months and signal extra interest fee hikes are certainly coming. Meantime, up on Capitol Hill, lawmakers, they're scrambling big time proper now to try to go laws 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 is the state of play on this critically important laws? JESSICA DEAN, CNN CONGRESSIONAL CORRESPONDENT: Wolf, right now, the Senate has simply begun a series of votes for the National Defense Authorization Act. That's one of the must-do issues they want to finish this week. It sets the policy agenda and authorizes funding for the Department of Defense. So, we anticipate that to pass during these collection of votes. Then they need to turn their eyes to the brief-term funding bill. And remember, tomorrow is the deadline that they need to get that completed. At this level, there aren't any indications there will be a government shutdown. We do anticipate they'll get that achieved. But right now, they're wrestling with simply sort of how they're going to vote by way of how they're going to set that vote up, the time agreements, things like that, these final-minute particulars that they try to work out. So, we're conserving an eye on that. But, once more, at this point, no indications of a authorities shutdown, we do anticipate that they'll move that quick-term funding invoice, which has already passed the House, which means it then will go to President Biden's desk. So, then that units them up for this bigger spending bundle that we know that Senate Minority Leader Mitch McConnell, Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi all need to get finished. That's the subsequent big crunch.

Now, one identify I didn't embrace 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 the place Mitch McConnell is on this. And, actually, we heard from Senator Lindsey Graham earlier right now. He is predicted to again that larger funding invoice. He mentioned that the House should not be ready around. There has been some discuss from House GOP members that they need to wait until they take control of the House to deal with this larger spending package deal. Graham is saying, they can't even get a speaker elected, a lot much less go a bill. Those were his phrases. And so then we flip to the McCarthy of it all and him attempting to turn out to be speaker. His eyes are on January 3rd and getting to 218 votes, he remains to be coping with Republican hardliners who're very against him turning into speaker. And we know that some moderates in the House, some moderate Republicans, have began floating ideas of how they may push again towards these hardline Republicans and really help McCarthy get to the finish line on this. One concept that was floated, according to our reporting, is to kick them off committees. Again, nobody agreeing on that, but those are a number of the ideas which are being floated proper now, as McCarthy tries to get that speakership. And average Republicans strive to actually flex their muscles just a little bit within the House, nevertheless it stays to be seen, Wolf, if that may actually occur.