Transcript-Cnn "Late Edition"

BLITZER: Thanks very much for joining us. I don't know whether to call you Madam Speaker-designate or -- what's the formal title until you're actually sworn in as speaker, what, January 3?

PELOSI: Well, this week's still Nancy.

(LAUGHTER)

BLITZER: I'm not going call you Nancy. But the president, when he spoke with you on the phone this morning, he called you...

PELOSI: He called me speaker-elect, but technically, the caucus still has to act. Once they act -- the speaker is a constitutional officer elected by the House of Representatives, so that happens in the first week of January.

BLITZER: I'll call you Congresswoman for the time being. But there will be plenty of time later to call you "Speaker." It's obviously an historic moment, a woman becoming speaker of the House of Representatives.

What is the impact? What does that mean for you?

PELOSI: Well, what it means for our country, I think, is something very important. The Congress of the United States, as you know, Wolf, is an institution steeped in history and tradition. For a woman to break through what I call the marble ceiling here is something quite remarkable. It sends a message that women can do anything.

BLITZER: And do you feel a special responsibility, knowing that historically this has never happened in our country before, that a woman becomes the speaker of the House?

PELOSI: I do. I feel a very special responsibility. I feel responsibility to have the most honest and open Congress, to have a Congress that has civility as its hallmark, bipartisanship in our debate, in our deliberations and fiscal soundness, as a woman would want to have, not heaping mountains of debt on future generations.

And as the first woman speaker, I would want to conduct myself, perform my duties in a way that would be sure that it wouldn't be too long before we would have another woman speaker of the House.

BLITZER: It puts a little added pressure on you, but we'll get back to that. Let's talk about the news of the day.

Lots of news, but we'll start with Donald Rumsfeld, a bombshell announcement. Only a few days ago, the president said he was doing a fantastic job, together with the vice president, Dick Cheney.

Is this what you wanted, Rumsfeld to step down?

PELOSI: Yes. Well, there were two major interventions since the president's last reaffirmation of his support for Secretary Rumsfeld. One was, of course, the vote and the voice of the American people yesterday, rejecting the "stay the course" policy of the president in Iraq.

And just before that, the voice of the military, in the Army, Navy, Air Force, Marine Corps Times saying that "Rumsfeld Must Go," to use their words.

The president got the message, thank heavens. And I think it signals a new change, I hope, for the better in Iraq.

BLITZER: What do you think of his designated successor, the former CIA director, Robert Gates?

PELOSI: Well, this is a matter for the Senate to deliberate on. And the president has proposed they will confirm. And I very much look forward to the hearings on that nomination.

BLITZER: But fundamentally, do you think there will be a real change in U.S. policy toward Iraq, or this is simply changing the cast of characters?

Will the president, in other words, do what you want him to do?

PELOSI: Well, first of all, the president is the commander in chief. Donald Rumsfeld and whoever the president appoints or is confirmed -- Mr. Gates in this case -- is an employee of the president. So the policy is the president's.

The implementation of the policy is Mr. Rumsfeld. And that's why I think it was very important for him to go.

BLITZER: If the president pursues the current policies, as you call it "stay the course," which he no longer uses that phrase, one option would be, in the House of Representatives, the power of the purse to cut funding for the war in Iraq.

Is that on the table?

PELOSI: Not really. We would never...

BLITZER: Why isn't it on the table?

PELOSI: Well, because our troops are in harm's way. They have been sent there, whether you agree with the policy or not, and I certainly did not agree with the resolution to go to war. We would not withhold our funding for the troops there.

BLITZER: So what can the House of Representatives do, with you as speaker, if the president, over the next two years, continues the strategy, the policy as is? PELOSI: Well, what we have done, the House and Senate now, with a Democratic majority in the Senate, I anticipate, Senator Reid and I -- the Democratic leader there -- have put forth some principles for solving the problem in Iraq.

BLITZER: You can make recommendations, basically, but there's not much more -- if you're not going to use the power of the purse, there's not much more that you can do. You can do some oversight.

PELOSI: Well, the oversight will be very important because then the truth would be revealed. But, remember that "stay the course" has with it -- whether the president changed the slogan, he hasn't changed the strategy or the approach.

And "stay the course" also implies staying the course of having a one-party policy in Iraq. Even his own Republicans, in some cases, are deserting him on this.

So I think, in the interest of our national security and protecting the American people and bringing stability to the region and to honoring our commitment to our troops, we need a different approach.

And extending the hand of partnership to the president, not partisanship but partnership, to say, let's work together to come to some common ground where we can solve the problem in Iraq.

BLITZER: Can you work with this president?

Because he was asked, at the news conference earlier today, about some things you've said of him. Our Suzanne Malveaux asked a very pointed question of the president, quoting some of the remarks, "a liar," "misleading the country."

PELOSI: I never called the president a liar. I never called him that.

BLITZER: But you have a problem working with this president. Is all that in the past now?

Are you ready to start afresh in working as the incoming speaker?

PELOSI: Absolutely. You know, the campaign is over. Democrats are ready to lead, prepared to govern, and absolutely willing to work in a bipartisan way, in partnership, not partisanship, with the Republicans in the Congress and with the president of the United States.

BLITZER: The vice president said, the other day "... the president has made clear what his objective is. It's victory in Iraq and full speed ahead on that basis, and that's exactly what we're going to do."

Do you consider that statement -- that was pre-election -- still operative? PELOSI: I would say to the vice president that it's a little too late for full speed ahead. We've been in Iraq for 3 1/2 years, longer than the U.S. was in Europe during World War II. So "full speed ahead" -- I don't think so.

Right now, again, we need a new direction that brings stability to the region and makes the American people safer.

BLITZER: The power that you will have as the majority is subpoena power, when you conduct your investigations, your oversight.

You said on "Meet the Press," back on May 7, "Well, we will have subpoena power. Investigation does not equate to impeachment. Investigation is the requirement of Congress. It's about checks and balances."

Tell us how you plan on pursuing -- using this subpoena power.

PELOSI: Well, first of all, others have said to us, do the Democrats want to get even now that we're in the majority?

We're not about wanting to get even. What we want to do is to help the American people get ahead, not to get even with the Republicans.

And so as we go forward with our hearing process, which is the normal checks and balance responsibility of Congress, it will be to what is in furtherance of passing legislation that makes the policy better, that improves the lives of the American people. In order to make important decisions, you have to base them on facts. That's the only way your judgment...

BLITZER: So you'll use that subpoena power as appropriate.

PELOSI: Well, it's not a question -- well, subpoena power is a last resort. We would hope that there would be cooperation from the executive branch in terms of investigating the prewar intelligence. I don't know what those -- those decisions will be made by our caucus with the wisdom of the committees of jurisdiction. They may or may not be a priority.

We're a brand new caucus. We have many new excellent members coming in, and we will establish our priorities together, but we will not abdicate our responsibility as the first branch of government, Article One, the legislative branch, and our checks and balances responsibility.

BLITZER: I ask the question about subpoena power because the vice president, once again, made clear if you subpoena him, he's not necessarily going to play ball. "I have no idea that I'm going to be subpoenaed," he said the other day. "And, obviously, we'd sit down and look at it at the time. But probably not, in the sense that the president and the vice president are constitutional officers and don't appear before the Congress."

PELOSI: Well, as you know, President Ford did, and he wasn't subpoenaed, because he came without a subpoena. But why are we even talking about this? We're so far from that. We're at a place where we're here about the future.

Whatever information we need to make the future better, to go forward, whether it's to protect our country, to end our engagement in Iraq, to make our economy fair, whatever it is -- we need to move toward energy independence, I might add -- that's where our priorities are. Information is central to that. So, we would have hearings to obtain information.

BLITZER: Here's what you said on "60 Minutes" back in October: "This election is about them. This is a referendum on them. Making them lame ducks is good enough for me."

PELOSI: Well, that was in answer to their question about impeachment. I said impeachment is off the table. Making the president a lame duck, that is to say, not a president with total power where there's no Congressional questioning, oversight, or hearings about his policy when there should be, so we will now work together. The campaign, as I said, is over. We're ready to lead, prepared to govern and look forward to working with them.

BLITZER: We're almost out of time, but a couple of housekeeping questions. The majority leader in the new Congress. We know Steny Hoyer wants it. John Murtha, an outspoken critic in the war in Iraq, wants it. Who do you want to be the majority leader?

PELOSI: I don't even know completely who is running. All kinds of ambition emerges after you win a majority, as I am learning, and so when we see all of that, we'll go forward. I will say, though, both of them have served our party very well. Steny Hoyer I've known since we were interns in Senator Brewster's office here. I'm from Maryland, as you know. And then Jack Murtha performed a great service to the country in blowing the whistle on this war one year ago.

BLITZER: And finally, can we assume that the ranking members, now the minority members, of the various committees, will automatically step up and become the chairmen of those committees?

PELOSI: Well, again, that will be a decision of the House Democratic Caucus. Merit, seniority, diversity and the support of the caucus are some of the criteria that are spelled out in our own rules. Most of them, I think, will go forward, but I can't speak for the entire caucus.

BLITZER: What about the Intelligence Committee?

PELOSI: What about it?

BLITZER: Do you think Jane Harman would be the appropriate chair, Alcee Hastings would be the appropriate chairman?

PELOSI: What you have to understand about the Intelligence Committee is the speaker of the House and the minority leader on the first day of Congress appoint a whole new intelligence committee each term. Sometimes they reappoint the same people. Sometimes they don't. But there is no seniority on the intelligence committee.

BLITZER: Let me just congratulate you and wish you the best of luck. This is going to be an exciting ride. We started off that you are going to be the first woman to be the speaker of House, so you have an enormous amount of responsibility that comes with the job. A little bit extra because you are making history.

PELOSI: Well, I appreciate your saying that, and I think one of my first acts as, post-election will be to become a grandmother for the sixth time. We're anxiously awaiting the birth of our grandchild, who was due the first week in November. So a good omen. We'll get ready for our new grandbaby as we get ready for a new Congress.

BLITZER: Well, we'll wish you only the best on that front as well.

PELOSI: Thank you. Thank you, Wolf.

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