i'm margaret brennan in washington. and this week on "face the nation," december kicks off with some bright spots when it comes to the economy. how will they impact that cloudy financial forecast for next year? the race to get as much done before the holidays as possible is on here in the nation's capital. international diplomacy has stepped up on a number of fronts. but will vladimir putin bend to new overtures to end russia's war in ukraine and return u.s. prisoners? with continuing protests in iran and new challenges when it comes

to china, we'll talk to it the biden administration's top diplomat, secretary of state antony blinken. then, last week saw positive economic news on the jobs front. a surge in holiday shopping, and a drop in gas prices. >> the americans are working, the economy is growing, wages are rising faster than inflation. >> but there have been some big layoffs in media and the tech sector. and the fed is likely to raise interest rates again later this month. we'll talk with bank of america's ceo brian moynihan. and as new house leaders prepare for the next congress, we'll talk to mike turner, the presumptive intelligence committee chair and the new number three democrat, california congressman pete aguilar. finally, that last senate seat will be decided in a tuesday runoff in georgia. we'll tell you what's in stake and we'll check in with the

obama attorney general eric holder. it's all just ahead on "face the nation." ♪ good morning and welcome to "face the nation." we have a lot to get to today but we want to jump in with our first guest, secretary of state, antony blinken, who joins us from the state department. good morning to you, mr. secretary. >> margaret, good morning. good to be with you. >> i want to start with some breaking news overnight out of iran. they have abolished the morality police. this is after months of protests following the death of mahsa amini, who died because she was taken into custody since her head wasn't adequately covered. does this stop the protests that have been raging? >> that's up to the iranian people. this is about them. it's not about us and what we've seen since the killing of mahsa

amini has been the extraordinary courage of iranian young people, especially women, who have been leading these protests, standing up for saying what they want to say, wear what they want to wear. if the regime has responded in some fashion to those protests, that could be a positive thing. we have to see how it plays on you the in practice and what the iranian people think. it's about them and up to them. >> we've also seen protests in china because of these covid lockdown policies. they seem to have died out in recent days. is that because the police state stopped them or have they actually had an effect? >> well, we've seen apparently some easing of the covid restrictions in recent days, but very hard for us to speak to that. there again, we've been standing up for the basic principle that people should have the right to make their views known peacefully, to protest, as the case may be, to vent their frustrations. >> your deputy wendy sherman

gave a speech in washington on friday where she said, i think war is potentially possible because xi jinping now has absolute control in china. you're about to go to china. do you agree with that assessment? >> so, margaret, we're in an intense competition with china. of course, there's nothing wrong with competition itself as long as it's basically fair and on a lvel playing field. and we're working with countries around the world to build c convergence on the approach to china, which i've seen get very strong in europe, in asia. the president has a strong determination to ensure that the competition does not veer into conflict. that's one of the reasons he spent three hours with xi jinping on the margins of the g-20, one of the reasons he asked me to go to china to make sure we're talking, communicating, making clear what our intents are, what we're doing. that's vitally important. >> but war is potentially possible, is what she said. >> the determination we have is to make sure the competition does not veer into conflict. and this is also what the world

expects of us. they expect us to responsibly manage the relationship with china. this is something i hear from countries around the world. it's exactly what president biden is doing. standing up strongly for our interests and values, working with other countries who are similarly situated to advance them, making sure we're keeping the contacts open, keeping the dialogue open. >> i want to ask you about russia. president biden says he has no plans to speak with vladimir putin, but he would if there was an indication he wanted to end the war. the president's top military adviser, mark milley, has said during this cold period, combat will slow and there could be a window for diplomacy. you're the top diplomat. do you think there's value in trying to start talks? >> there's also value in diplomacy if the parties in question, in this case, russia, are actually interested in meaningful diplomacy. what we've seen at least recently is exactly the contrary. even as president zelenskyy from ukraine came to the g-20

countries, the leading economie proposal for how to move forward toward peace, what did vladimir putin do? he doubled and tripled down on everything he was doing. mobilizing more forces, annexing territory in ukraine. and now trying to weaponize winter. he's been unable to win on the battlefield so he's basically turning his ire and his fire on ukrainian civilians going after the energy infrastructure, trying to turn off the lights, turn off the heat, turn off the electricity. that's what's going on. so, unless and until putin demonstrates that he's actually interested in meaningful diplomacy, it's unlikely to go anywhere. >> the biden administration did put an offer on the table when it comes to a prisoner swap with russia. that was back in july. two weeks ago -- >> that's right. >> -- you said, russia has a failure to seriously negotiate. has that changed? is russia serious now? >> margaret, as you know, we did put a significant proposal on the table many months ago. since then we've been engaged

repeatedly in -- any way that we can to try to advance it. and to look to see if there are different issues to achieve what we need to get people home, brittney griner, paul whelan. we're engaged on that on a continual basis and we will bring these people home. >> these talks are ongoing and active, as the white house says, that suggests you believe there's some reason to believe they are serious now. you said they weren't serious a few weeks ago. >> as they say, margaret, the proof will be in the pudding. we have to see if the engagements we've had, the discussions we've had, produce an actual result. that's the most important thing. but we are not resting on the laurels of having put forward a proposal some months ago. we've been actively engaged over these many months to try to move things forward.

>> the offer for our viewers was to release convicted arms dealer known as the merchant of death, viktor bout. there are two americans being held, brittney griner and paul whelan. brittney has been in custody for less than a year. whelen, a former marine, has been in custody since 2018. russia wants a one-for-one swap. how do you determine which american would be left behind? >> i'm not going to get into the details. it would be counterproductive. my determination is one way or another, as long as it takes to get people home, my efforts, the efforts of the entire administration, are to bring both paul and brittney home. >> to bring them both home but russia wants a one for one swap. >> again, i'm not going to get into the details of where we are. >> that's what russia media has been reporting.

>> russian media reports a lot that i wouldn't necessarily take at face value. >> that's not what russia has told you? >> again, i'm not going to get into the details of this. the other side gets a vote in this. it's not just what we want. it's what they're prepared to do. this is something we're working on almost every day. >> and i know their families would love them home by christmas, which is why i'm asking you. i want to also, before i let you go, ask about israel. benjamin netanyahu is on trial for corruption but he's right now trying to piece together an alliance to form a government. if he does, he'll become prime minister again. i know you know this. but he's been allying himself with figures who have spewed anti-arab, anti-gay hate, as well as discrimination against non-orthodox jews. ones to cancel gay pride parades, two have called for deportation, including the man wh heads israel's police force.

doesn't this makeup really jeopardize your intention to have peace in the region? >> margaret, we have worked and will continue to work with israeli governments of every kind just as israeli governments have worked with american administrations of every kind. and we're determined to do that going forward. our focus is less on personalities and more on policies. the important thing is what policies does the government pursue? the incoming government, at least, knows our views on a number of these issues, but we have an absolute commitment to israel's security. that's not going to change. and as we always have in the past, we'll speak directly to each other. we'll be very clear about what we think and what we believe with our israeli allies. i'm sure they'll do the same. again, we'll focus on the policies not the personalities. >> but this right-wing government as being put together compromises your relationship, because then have you to spend

time about not canceling gay pride parades. that's not what you want to focus on, which is settling peace, a two-state solution, which is being rejected by many of these figures. >> i think we can run and chew gum at the same time. >> so you are not concerned about this? >> again, we're going to focus on what the government does, and as we have with every past israeli government and as israelis every past u.s. administration, we'll work closely together. >> secretary blinken, you're a busy man, thank you for your time this morning. >> great to be with you. we turn to ohio congressman mike turner, the top republican on the house intelligence committee. congressman turner, good to have you here in person. >> thank you. yes, grit to be here. >> just yesterday the director of national intelligence avril hains said russia was struggling to keep up with the amount of munitions used in this war, the cold weather is slowing.

given what you know, when will this war end? >> well, the one thing we know is that the gains ukraine is making are real. they're real on the battlefield. they're real in the support that they have around the world, have with democracies on the floor of the united nations, condemning this aggression by russia. but ukraine really has to be the one that decides if, when and how negotiations are entered into. at this point they're battling for their country. they're losing lives for democracy. president zelenskyy says -- i was just in ukraine before the elections. he says openly, he understands he's the front lines for democracy and he's fighting an authoritarian regime. and i think, you know, obviously russia has to re-evaluate how they look at this conflict and how putin looks at what -- >> you add gree with the administration on this? >> i agree absolutely that this is something where -- this is a

war of aggression that russia needs to be -- to re-evaluate and withdraw from ukraine. >> you said, because are you poised to run the intelligence committee because you're at the top of the republicans when republicans take control in january, is this going to be an area where, as you promised, you can take politics out of it and actually work across the aisle? what does that mean? >> yeah. when i went, we went on a bipartisan trip to deliver to president zelenskyy a message there's bipartisan support for ukraine. i think there's a number of issues we'll be working on a bipartisan basis. what should the united states policy be? i serve on the armed services committee. how do we make sure they get the weapons systems they need. how do we hold together this world alliance we have where the world is condemning what russia is doing. and of course, the expansion of nato. we're looking forward to sweden and finland joining, which is the opposite of what putin believed he would achieve in attacking ukraine. he's seen the expansion by two

valuable partners with great military capabilities joining nato. >> i want to show our viewers some pretty extraordinary video that the pentagon unveiled this week. a b-21 raider. the first u.s. nuclear stealth bomber aircraft in more than 30 years. and it's being packaged as a deterrent to china. how concerned are you of the pace of beijing's nuclear development? >> extremely. i want to commend the administration because they've been very forward-leading in releasing and declassifying information about what china is doing. they are expanding their nuclear weapons, their nuclear weapons capability, icbms targeting the united states. this plane is incredibly important. i sevened as chairman as we began the process of working on this plane. and it gives us an additional balance because it's an additional delivery vehicle, an additional way to combat what china is doing. >> to drop nuclear weapons.

>> to cause people not to drop nuclear weapons. that's what's so -- >> it's really the deterrent. >> it's to make sure the balance of power is there so people understand that the cost is just too great. when china is expanding their nuclear weapons, they're looking at the united states, if we blink, if we don't, if we don't respond, then they assume they can get first strike capabilities that not only holds us at bay but really hoildz us at risk. then you have the leader of a nuclear power that might make that miscalculation and cost unfathomable lives. >> you talk about being open about intelligence. i'm wondering if your you role, will you be asking the director of national intelligence for a briefing and a damage assessment related to mar-a-lago and the documents the former president took to his private home? >> that's already in process. >> it hasn't happened. >> it has not been largely -- i just talked to the director of national intelligence about this particular issue. one issue i discussed with the director, which is very, very

interesting, is that, you know, prior to the mar-a-lago raid, no one in the intelligence community or in the national security community was engaged at all by the fbi to request an asssment as to what the risk of the documents that had been surrendered from mar-a-lago or that might have been at mar-a-lago or were even perceived as being missing. >> and you think the justice department -- >> this was just the fbi and the archivist, a glorified librarian, coming together and deciding to raid mar-a-lago. now, we -- >> you're not downplaying taking classified material to your personal home is an option -- >> absolutely not. there's another problem the commander in chief had with escalation. that's one of the questions we have. the director of national intelligence said they have run their risk assessment and prepared to give our committee in the senate and house a presentation -- >> do you have a sensor the scale of the damages? . >> just a scheduling issue. we just had a meeting with the

director both senator warner and myself and adam schiff, and as they look to how do we get everybody scheduled to get together. those who have done the assessment, because it's not just the director that will be coming, they'll have to come forward to give us, what did they see, what do they have and how do they perceive the threat that may or may not have existed from some of these documents. >> all elected leaders swear to uphold the constitution. does calling for its suspension, is that disqualifying for presidential candidate? >> it's certainly not consistent. >> you know why i'm asking the question. >> i do. it's certainly not consistent with the oath we all take. >> yesterday the front-runner for the republican nomination, the standard bearer for your party, posted on truth social, and we know he lost the 2020 election but continues to claim he did not, a massive fraud of this type and magnitude allows for the termination of all rules, regulations and articles, even those found in the constitution.

should the standard bearer for the republican party, the front-runner for the phenomenal nation for the presidency, for your party in 2024, say this? >> well, you know, i -- first of all, i vehemently disagree with the statement that trump has made. trump has made a thousand statements in which i disagree. there is a political process that has to go forward before anybody -- >> constitutional conservatives are pretty clear about where they value the constitution. >> exactly. >> is there any scenario in which -- >> you do get to pick the question but i do get to pick my answer. >> i'm trying to get you to answer the question i'm asking. >> there is a political process that has to go forward before anybody's a front-runner or anybody is a -- even the candidate for the party. >> do you condemn him saying something like this? >> absolutely. and i believe, answering your question, people are certainly going to take into consideration a statement like this as they evaluate a candidate. >> i also have to ask you about the other statement, and the people that he has been spending

time with. a neo-nazi pro-putin nick fuentes, along with kanye west who this past week praised hitler. >> this is atrocious. everybody i think -- everyone both condemns, is shocked and is as disgusted and nauseated by the fact that we're even in this year, in 2022, having anyone that would make statements like that, nevertheless have anybody who would engage in a conversation with someone who is making statements like that. >> having classified documents at the same place where they're having the dinner, which were not -- >> well, that's not -- >> -- not necessarily securely held, government records that should be on government property, all those things together is a problem. >> well, as you know, the fbi raided his home, so there are no classified documents there. but all of these are issues of judgment. >> the premise of saying he doesn't know who he's having

dinner with at that home. >> these are all issues of judgment and a political process has to go forward. i believe voters are smart and they'll take those things into consideration in a political process. >> congressman, thank you for coming on. >> good seeing you. >> and answering questions. we'll be back in just one minute, so stay with us. keep itl and talk about some risks. wiwith type 2 2 dias you u have up toto 4 times greater r risk of stroroke, heheart attackck, or death. even at yoyour a1c goaoal, you'u're still a at risk ...whichch if ignorered coululd bring yoyou here... ...m.may put youou in onone of thosese... ...or r even worsese. too mumuch? that's thehe point. geget real abobout your rirs anand do sometething aboutut. talk to o your healtlth carere providerr ababout ways t to lower yoyr risksk of strokeke, heart attack, oror death. leararn more att getrealalaboutdiabetetes.com when youou can barelely smelell your plulug-in, whwhat are youour guests s sme? try y febreze fafade defy plp. it h has built-i-in technoloy to digitally control how much scent is released to smell first day fresh fofor 50 days.s. ♪la la la la a la♪

midterm voting will finally, fingers crossed, be over after tuesday's senate runoff in georgia between incumbent democrat raphael warnock and republican herschel walker. democrats will control the senate, but that 51st seat, if warnock wins, will give them more power when it comes to building committees, and it means potentially fewer headaches for democratic leaders over those single senator holdouts we saw frequently in the last two years. cbs news congressional correspondent nikole killion reports from atlanta. >> reporter: on this s.e.c. college championship weekend, legendary running back herschel walker is hoping to follow the

bul bulldogs' win over lsu with a victory of his own on tuesday. >> we have weak leaders in washington. i say enough is enough. now what we got to do is get out and vote. >> reporter: georgia won the s.e.c. championship by 20 points. there's no way tuesday's senate election margin will be anywhere near that. neither candidate made the required 50% thresholdld onn novembmber 8th, forcing the r r into overtime. since then the state's been bombarded with campaign ads and out-of-town visitors. >> starring for the state of georgia, herschel walker. ♪ >> reporter: the current president and his predecessor stayed away during the runoff, but one president who did return to georgia, barack obama. >> mr. walker has been talking about issues that are of great importance to the people of georgia. like whether it's better to be a vampire or a werewolf. this is a debate that i must confess i once had myself.

when i was 7. >> reporter: here's what the former president was talking about. >> vampires are cool people, are they not? i want to tell you something i found out. a werewolf can kill a vampire. did you know that? i don't want to be a vampire anymore. >> reporter: the republican challenger has repeatedly struggled to combat headlines ranging from allegations of domestic abuse to revelations of tax records indicating his primary home is in texas, not georgia. democrats say the controversies cut to walker's character. >> what we're seeing is a disturbing pattern from herschel walker. and all of these women can't be lying. >> reporter: voters here in georgia had about a week of early voting. that's now ended. more than 1.8 million ballots have been cast. that's about a quarter of active voters. in just two days, we'll find out who wins. margaret.

>> thank you. there will be a special georgia runoff edition of "red and blue" on our cbs streaming network starting at 9:00 p.m. tuesday.

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or whatever comes down the road. this is "the planning effect" from fidelity. we're joined by california congressman pete aguilar, the new number three democrat in the house. good to have you here. you are the highest ranking latino in congressional history. that is historic in this new job. it's generational shift for democrats in january, but as you go into the minority, you also have less experience leadership. what does that mean? this is going to be a knife fight or the next two years with republicans. >> first of all, how far we've come. it's not lost on me this significance of being in this chair at this moment with akeem jeffries and kaherine clark. we're also going to be benefiting from the leadership of jim clyburn at the leadership table and nancy pelosi and steny hoyer will be members of congress. we'll continue to do what's right for the american public. that's our number one message.

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when you humble yourself under the mighty hand of god, in due time he will exalt you. hi, i'm joel osteen. i'm excited about being with you every week. i hope you'll tune in. you'll be inspired, you'll be encouraged. i'm looking forward to seeing you right here. you are fully loaded and completely equipped for the race that's been designed for you.

welcome back to "face the nation." we want to continue our conversation with california congressman pete aguilar. i had to cut you off. i apologize for that. i want to pick up where we left off. you are now finishing up this lame duck session before you move into this leadership role. we are seeing the focus really just being on keeping the government funded. as part of that, will you be able to put in the hundreds of millions of dollars that so many mayors are asking for to shore up border security in the next few weeks? you're from california.