Rep. Duffy on Istanbul nightclub attack, cyber security; Rep. Collins: Trump 'poking back at sore losers'

This is a rush transcript from "Sunday Morning Futures," January 1, 2017. This copy may not be in its final form and may be updated.

GREGG JARRETT, GUEST HOST: We begin with a Fox News alert on a New Year's massacre as terror rings in 2017.

Hello and welcome to "Sunday Morning Futures" on this New Year's Day. I'm Gregg Jarrett, in for Maria Bartiromo.

A deadly attack at a nightclub in Istanbul, Turkey, leaving at least 39 people dead, dozens more wounded, as many as people were jammed inside that nightclub welcoming in the New Year when suddenly a lone gunman allegedly in a Santa costume killed a police officer standing guard then burst inside opening fire.

The gunman still on the loose this hour, raising serious fears that more bloodshed on the first day of the year could be in store.

John Huddy is live in our Middle East bureau with the latest -- John.

JOHN HUDDY, FOX NEWS CORRESPONDENT: Yes, Gregg, we're starting to learn more details this hour in factories prime minister said that the gunman left a weapon left a gun behind at the scene of this morning's massacre, and attack, and at this point, a manhunt is underway and the concern is that this guy may try to pull something else off before authorities captured. So, time is really of the essence.

The attack happened right around 1:15 a.m. local time in Istanbul at a place called Reina nightclub in the Ortakoy district of Istanbul, actually stay there with our crew and cover the attempted coup -- very busy area, very popular area, a lot of bars, a lot of restaurants right at the base of the Bosphorus Bridge.

So, hundreds of people were packed into the club at the time of the shooting celebrating the New Year.

Now, officials say the attacker shot and killed a policeman as you mentioned out front and a civilian before storming inside the club and spraying it with gun fire. Officials say that he was armed with a long- barreled weapon though it's unclear what exactly that was. There been some reports it was an AK-47, possibly some other type of assault weapon. We're still waiting for more information about that.

But as you also mentioned, Gregg, the death toll stands at 39 right now.  With several people in critical condition, that number obviously could go up at least about 70 people meanwhile were wounded and at least of 15 of the dead were for foreign nationals, including an Arab-Israeli woman according to officials.

Now, Turkey's prime minister denied reports that the attacker was wearing a Santa Claus outfit costume, but CCTV surveillance video shows that he was at one point wearing a Santa Claus hat and it appears according to officials that he change clothes once inside the club in order likely to escape.

He was initially carrying a backpack dressed in black outside the club and then he changed and he was seen leaving in a hat and other clothing after that.

So far, we don't have an identity of him and no group has claimed responsibility but previous vicious attacks and Turkey have been carried out by ISIS or Kurdish militants. So, again, that that could change as far as the responsibility aspect.

Today, Pope Francis condemned the attack in his New Year's message also other world leaders are coming out against it, including Russian President Vladimir Putin who said that Russia stands with Turkey and combating terrorism -- Gregg.

JARRETT: John Huddy, live in our Mideast bureau -- John, thanks very much.

For more on this, let's turn to Wisconsin Congressman Sean Duffy, a member of the House Financial Services Committee.

Congressman, thanks for being with us.

As you know, Turkey is a valued member of NATO, a partner with the U.S. against ISIS. What's your reaction to this massacre that murdered 39 people?

REP. SEAN DUFFY, R-WIS.: First up, Gregg, happy New Year.

You look at Turkey and we start the New Year off with another what appears to be terrorist attack and these stories are becoming far too familiar in America and around the world. Our hearts go out to the Turkish people and the victims of the attack and their families.

But, Gregg, as we look to 2017, I think it's so important that we take a relook at what's happening with global radical Islamic terrorists and their in their new mission to use lone wolves to go into soft targets and kill innocents.

One of the things I think we have to do is take a better and stronger look at what kind of intelligence -- human intelligence are we getting on the ground up. Barack Obama has taken a position where we're going to kill with drones, terror targets, where George Bush was capturing and sending to Guantanamo Bay, these individuals and extracting information from them to help us better engage in the fight. We have to think about what kind of intel we have --

JARRETT: That would require additional ground troops. Is there an appetite for that and not just on Capitol Hill but across America?

DUFFY: You make a good point. There's not an appetite for these kind of attacks in American around the world, and I think America and citizens of the world want strong responses.

And if that's having some boots on the ground to get these bad actors and be able to get better intelligence to stop it, I think there would there be consensus to make that happen, absolutely.

Congressman I want to switch to another --

DUFFY: Now, Gregg, that that's not thousands of people, tens of thousands of troops on the ground. But we do have specific folks can get in and extract those folks.

JARRETT: All right. I want to switch to another subject. Senator John McCain will be holding hearings this week on cyber threats and surely to take center stage's the Russian hacking.

What do you expect we're going to learn?

DUFFY: Well, I think we have a great here and we have our intelligence officers including James Clapper. We're going to get information about Russia, about hacking in the election. But our broader risks that our system face from foreign entities that are going information not just from the U.S. government but from our companies and from our political apparatus.


DUFFY: And I think what you're also going to hear is a greater conversation about what Barack Obama did in the lead-up to the election and then what his response was after these attacks. Did he do enough? Did he go far enough to show that anyone who engages in attacks -- cyberattacks on the United States of America, that they will be strongly held to account?  Was his response strong enough with Russia?

JARRETT: Well, I want to ask you about. They're great many people who believe that President Obama's punishment or retaliation was woefully inadequate. Do there need to be stronger sanctions put into place that would actually impose a meaningful costs on Russia and serve as a deterrent?

DUFFY: Well, one, for this year and we want to let the American people see actually what was taking place, what public information do we have that we can share with them so they can make an analysis on their own.

But many of us to view the bad acts of Russia not just with this cyber hacking but also with what they've done in Crimea in the Ukraine and other in Syria have been in Georgia, we think that our response has been far too light on Russia and we have to strengthen it. So, I think there will be a consensus that we have to do more to deter Russia from these kind of acts.

I also think, Greg, what's going to be interesting to see how this panel in the Senate talks about, was Russia just trying to mess with our elections, or were they actually trying to help Donald Trump? I think that's gonna be an interesting point that's going to come out in this hearing in and we're not quite sure what I'm going to say.


JARRETT: President-elect Trump has been dismissive of the Russian hacking.  At first, he said he didn't believe that it happened or that they did it, and then he said, "Well, it's time to move on." He tweeted that, he said that on camera.

Are you concerned that he is not taking this seriously enough?

DUFFY: Well, two points. One, now, he's gonna meet with the intelligence community later this week. He might have a different opinion once he gets that brief.

But in regard to cyber hacking, it was the day after the election, he said he was going to instruct the Pentagon and the Joint Chiefs of Staff to come together and develop a plan to protect American interests from cyber hacking. So, he understands the threat that this is I think he might have a different in one formed opinion once he gets the intelligence brief.

But I think what Donald Trump's mean pushback has been is that Democrats are trying to undermine his win on November 8th and say this was because Russia hacked it was trying to help Donald Trump and take something away from his victory that, you know, was historic and that he won Wisconsin and Michigan and Ohio and Pennsylvania. I think that's been his affront, not that Russia's trying to play in our elections and influence the outcome.

JARRETT: Well, there's a subtext to all of this, and because President-elect Trump continues to refuse to release his tax returns, we don't know what his ties are to the Russian government or Russian businesses that may be linked to the Russian government. Does that cause you concern that this new president maybe in some ways beholding to Vladimir Putin or the Russian government, and that makes shade his view of foreign policy and our relations with Russia?

DUFFY: No, you know, I look at what Donald Trump has done in business, what he's done in his campaign, and now, what he's going to do for America.  I believe that Donald Trump is going to put America first and American interests first. And if Vladimir Putin and the Russians think that Donald Trump is going to be a friend and an ally, I think they can be sorely mistaken.

If they're going to do bad things around the world or if they're going to engage in cyber hacking or cyber warfare with United States of America, there's going to be a new cowboy in the Oval Office, and I don't think he's going to take that from not just Russia or China or any other foreign interest they're trying to attack America.


JARRETT: So, his praising Donald Trump doesn't bother you? Donald Trump's praising of Vladimir Putin doesn't bother you?

DUFFY: Listen, you got to put into context. So, one week, he's praising Vladimir Putin but the week before, he was saying that we're going to -- we're going to strengthen our nuclear armaments and we're going to modernize our nuclear weaponry and if Russia wants to engage in an arms race, have add it.

So, Donald Trump is I think being somewhat unpredictable and how he's dealing with Russia some say that Vladimir Putin is trying to say nice things about Trump to bring him closer to Russia, I think the opposite might be true. Donald Trump might be playing Russia in saying positive things about Vladimir Putin.

And again, one thing we know about Donald Trump, he likes to keep his adversaries off-balance and uncertain where he's going to go, but the one thing I know about Donald Trump is that he loves America, he wants to grow our economy, make our defense is stronger and he's going to put us first.  And if that means I have a strong stance against Russia, he's absolutely going to do that.

But going back to the first part of your story, Gregg --


DUFFY: -- one place we can partner with Russia is counterterrorism.  Russia and United States of America and other allies have to work together to defeat this radical rising threat of Islam, and they shared the same interests that we share in defeating these terrorists. And so, that's one space we might agree on. There's a lot of other spaces we will disagree on.

JARRETT: Even the Russian is propping Bashar Assad, which isn't exactly helping ISIS.


JARRETT: How is it they have the same interests?

DUFFY: So, you are talking Syria specifically.


DUFFY: So, obviously, we have some concerns about their role in Syria but they do have their own concerns about terrorism and radical Islamic terrorism in their country, just like we have in ours. And I think they do have a desire to defeat that.

And if you want to look at Russia, Russia is partnering with Assad against ISIS. Now, again, we don't think Assad is a great guy, but we do have disdain for ISIS and want to defeat them and so, if they share that same goal, let's partner up and join and crush this rising threat.

And if you can take them out in the Middle East, then you start to stop the mobilization of these lone wolves and lone actors in places like America, but now in Turkey as well or what appears to be in Turkey, a lone actor taking innocent lives. That's going to important, that partnership and the sharing of intelligence.

JARRETT: Congressman Sean Duffy, thanks for being with us. Happy New Year.

DUFFY: Happy New Year to you, Gregg.

JARRETT: President-elect Donald Trump and his jam-packed agenda, will Congress get on board with his plans when it gets back to work this week?  We'll talk to a member of the Trump transition team coming up next.


JARRETT: President-elect Donald Trump and Congress getting ready to roll up their sleeves as they map out an ambitious agenda. In the meantime, Mr. Trump sending out rather curious New Year's greeting to friends and foes, tweeting, "Happy New Year to all, including my many enemies and those who have fought me and lost so badly, they just don't know what to do. Love!"

New York Congressman Chris Collins is the congressional liaison for the Trump transition team.

And, Congressman, always good to talk to you.

REP. CHRIS COLLINS, R-N.Y.: Yes, good to be with you, Gregg.

JARRETT: You know, there's a couple of ways you can look at it. Maybe he's just twisting the knife a little bit into the losers of the presidential race and others. On the other hand, it may strike some people as rather petty that this is classic Donald Trump, he can't seem to get over anybody who dares to criticize him or disagree with him.

How do you see it?

COLLINS: Oh I think this is Donald Trump being Donald Trump, having a little fun and poking at both Barack Obama and Hillary Clinton, who -- I mean, even over the last week, Barack Obama saying such ridiculous things like if he had run in a third term, he would have beaten Donald Trump when in fact he had campaign for Hillary and said it was his legacy that was on the line. And then you got Hillary Clinton saying to the world, well, I won the popular vote -- and you know my wife was a ballroom dancer said that counts for "Dancing with the Stars". It does not count for the presidency of the United States so we'll give her the mirror ball trophy.


COLLINS: But it's -- if they can't get over it, how many Democrats even, you know, they're pointing to the Russian, but you know, let's stipulate the hack by the Russians when others have said there's no proof that would have changed the election.

So, this is Donald Trump sure he's poking back at sore losers, that's the camp we got to put him in.

JARRETT: Well, you know --

COLLINS: They're just plain sore losers.

JARRETT: It was entertaining. What's not entertaining to the media's that he hasn't held a news conference since July, keeps promising to hold one, but he hasn't done and he's promised other things and he hasn't done it.  He promised to hold a news briefing about avoiding conflicts of interest with his businesses and, of course, he canceled it.

Why not face the media for something longer than just you know two or three minutes sound bites?

COLLINS: Well, let's face it. President-elect Trump has his own way of communicating with America. Putting America first and the voters first ensure part of that is him tweeting out and having other folks you know relay the message. You've never seen anyone working harder than Donald J. Trump has been working through this transition. And so, there's no love lost between Donald Trump and let's call it the media who twisted and exaggerated many things he said.


COLLINS: So, I'll leave it to him and respect --

JARRETT: But, look, you know --

COLLINS: -- the way he's going to communicate.

JARRETT: You know as well as I do that you know when there is a news briefing where reporters get to have some questions. That's a method of holding the president-elect accountable for his actions and his promises.  Why not face that?

COLLINS: Well, again, I can't speak for President-elect Trump in and, you know, why he does what he does, but I can tell you America -- certainly those of us that supported him trust him implicitly --

JARRETT: Well --

COLLINS: -- and as we're trying transaction together --

JARRETT: -- would you encourage him? I mean, you're on his transition team.

COLLINS: No, frankly, I -- again, I would -- with all due respect to everyone, I would never suggest the Donald Trump how to communicate with the country.


COLLINS: Those of us are his supporters are actually quite pleased. I think what you really got his continued liberal media that they want to kind of cast a pale on his victory and in question it, they just want to get him and just pound away at who knows what --

JARRETT: Well, maybe he doesn't want to answer uncomfortable questions.

COLLINS: Well, these questions though go beyond the pale and that's the issue.


COLLINS: Now we can talk about cyber hacking all day long but then they want to throw in the inference all this impacted the election. It's the agenda that not so hidden agenda that the liberal press has that I don't blame Donald Trump --

JARRETT: Well, let me --

COLLINS: -- busy working on the transition from --


JARRETT: Let me ask you about his agenda, do you believe that he will reverse many of President Obama's executive orders and maybe reverse the Obama sanctions against Russia?

COLLINS: Well, I can assure you, yes, he will be reversing many of the Obama executive orders. See, Barack Obama, instead of working with Congress and having a legislative presidency, an executive order rulemaking presidency which we can undo many of these rules dating all the way back to last May without worried about the filibuster, and Donald J. Trump as president can overturn these executive orders on January 21st.

And we have been working with the president, the transition team, to have a list of those executive orders that we suggest will be overturned on day one of the Donald Trump presidency, which is going to leave what will call the legacy of Barack Obama in tatters.

JARRETT: All right. Congressman Chris Collins, good to see you. Happy New Year. Thanks for being here.

COLLINS: Happy New Year. OK, Gregg, anytime.

JARRETT: All right. President Obama huddling with Democrats this week, trying to keep Obamacare off the chopping block. Is it possible with a Republican-led Congress coming in? We're going to have more on that as we look ahead on "Sunday Morning Futures".


JARRETT: President Obama heading to Capitol Hill this week to meet with fellow Democrats. Mr. Obama reaching the final days of his presidency and doing what he can apparently to protect his legacy, namely, his signature healthcare law.

Joining me now, White House correspondent for "The Washington Examiner", Sara Westwood.

Sara, good to see you. Happy New Year.

President Obama, you know, rarely ventures down Pennsylvania Avenue to Capitol Hill, but he's doing it now. Does he seem in the waning hours of his presidency to be desperate to save Obamacare, to preserve some semblance of a legacy?

SARA WESTWOOD, WASHINGTON EXAMINER: Well, certainly, Obama sees the writing on the wall. He knows that Obamacare is going to be the number-one priority for congressional Republicans when they come back into session and for the Trump administration, they want to get rid of Obamacare. That's no secret that it's going to be their first order of business. And they're willing to repeal the Affordable Care Act without necessarily having a replacement in place, and that's something that Democrats are going to focus on -- the fact that debit that Republicans are setting Americans up for some sort of healthcare cliff without having an alternative in place.

Obama is going to Congress essentially to give Democrats their marching orders on how to try to fight back against what the Republicans are going to do.


WESTWOOD: It's going to be difficult, though, for Democrats because they're in the minority in both houses.

JARRETT: You reap what you sow. Did President Obama, the beginning of his presidency, sow the seeds of the future demise of ObamaCare when he absolutely refused to go along with a bipartisan approach to health care reform and insisted, you know, it's my way or the highway, and he passes Obamacare without a single vote in either the Senate or the House of Representatives?

WESTWOOD: Well, it certainly gives Democrats less credibility now when they're trying to argue that the solution to the Affordable Care Act should be bipartisan because it wasn't enacted in a bipartisan fashion. And you see examples of the way partisanship has come back to bite Democrats all around. You see that for example in the way the Democrats invoked the nuclear option.

And so, now, they can make these confirmations in the Senate without having to have, you know, you can just do it on a simple majority vote. So, that's somewhere again where Democrats are maybe reflecting on the partisanship that took place in the Obama and questioning whether that was wise now that they're going to lose control of all three branches.

JARRETT: As you know most legislation need 60 votes in the U.S. Senate because of the filibuster rule. But, look, as I understand it, Obamacare or major portions of it can be completely eliminated or repealed by using reconciliation. It's a parliamentary method by which you only need a simple majority.

You think that's what's going to happen?

WESTWOOD: That -- it looks to be that way. It's pretty clear that they're not going to be able to recruit the eight or nine Democrats they would need in the Senate to repeal outright all of Obamacare. So, they're going to use budget reconciliation to you know get rid of some of these major portions of Obamacare.

There are, though, portions of Obamacare that are popular with the American public.


WESTWOOD: Just a few of them, you know, some of them like the pre-existing condition ban where insurance companies can't refuse you if you're already sick -- those are things that they might want to consider keeping and I think that Obama will instruct Democrats to focus only on the most popular parts of the law when they're arguing against Republicans repealing it and to sort of paper over some of the failures of the legislation.

JARRETT: Let's say that the new president decides to reverse a lot of executive orders, for example, on immigration that were highly controversial. Let's say that he and Republicans are able to revise a repeal major portions of Obamacare and, of course, there's his trillion- dollar stimulus bill passed largely along partisan lines, which even the president grudgingly admitted, gee, I guess it wasn't shovel-ready after.

So, what is President Obama's legacy?

WESTWOOD: Certainly, the Affordable Care Act at the top of that list. You can look --


JARRETT: Yes, but if it's gone, what kind of a legacy is that?

WESTWOOD: Well, you're -- well, that's why you're seeing Obama so active in this transition period. He's throwing up all these road blocks for the Trump administration. He's trying to cement as much of his legacy as he can because he knows the Trump administration is going to come in and dismantle that. The Iran deal, the crowning jewel of his foreign policy legacy, that's going to be torn up. The Paris climate accord, Trump has already signaled he's not going to necessarily abide by those.

So, Obama sees what's going to happen and that's why he's trying to nail down the furniture before he leaves essentially.

JARRETT: If it happens is I just outlined, would Obama's legacy be some short-term successes but long-term failures in many of them?

WESTWOOD: That's the risk that he runs and it's why I think you see him signaling that he doesn't plan to go quietly into the night, that he plans to stick around Washington and continue to be a thorn in Trump side.

JARRETT: Wouldn't be interesting to be sitting in that room when he meets with those Democratic senators because there are who are up for re-election in 2008, who are from fairly moderate states, either purple states or red states, and, you know, they're at serious personal risk for their jobs if they don't go with Republicans to repeal Obamacare. I can't imagine they'd get a terribly friendly reception.

WESTWOOD: That is one thing that Senate Republicans can count as a win is that there are some very vulnerable Democrats that are going to be up in 2018. Heidi Heitkamp in North Dakota, you have Joe Manchin in West Virginia -- these are Democratic senators who will likely caucus with Republicans on a lot of these hot button issues because they know their constituents overwhelmingly voted for Donald Trump. And so, if they are seen resisting Donald Trump's agenda, that's not going to bode well for them in their reelection bid.

JARRETT: He held off, and said, oh, I could have beaten President Trump.  What does that say about the Democratic nominee and, you know, what does it say about his ego?

WESTWOOD: Well, exactly that, I sort of read that more as an insult against Hillary Clinton than Obama bragging on himself.

JARRETT: Really?

WESTWOOD: Obama had consistently taken digs at Hillary Clinton, that she didn't outline enough of a positive vision, that she didn't work as hard as Obama did when he ran, she didn't show up in the states where she needed to show up and he has subtly described her failures in that way before.

Now, obviously, this just shows that Obama still believes very much in Obama and a lot of people have read that is a bit of arrogance.

JARRETT: Sure. Sara Westwood, good to see you. Thanks very much.

WESTWOOD: Thank you.

JARRETT: A New Year's Day terror attack in Turkey stoking fears around the world. The death toll now stands at 39 people, and it could rise. A manhunt is still underway, the suspect at large.

The latest on the breaking news right after this.


JARRETT: More on our top story. The city of Istanbul on edge and high alert after a gunman opens fire on partygoers at a New Year's Eve celebration at a popular nightclub. At least 39 people are now dead, 70 others wounded. The terrorist is still on the loose.

Let's talk about this now with retired U.S. Navy Captain Chuck Nash, a FOX News military analyst.

Captain Nash, always good to see you. Happy New Year.

CAPT. CHUCK NASH (RET.), U.S. NAVY: Happy New Year, Gregg.

JARRETT: But a tragic one for the folks in that nightclub, hundreds of people jammed inside when suddenly this man opens fire.

What's your reaction to what is surely a terrorist attack?

NASH: Yes, this is absolutely nothing new. And the Turks, this is probably the fifth or sixth significant terrorist attack. There had been many more inside Turkey. And it all has to be viewed within the context of what's going on in Syria.

As you know, the Russians and the Turks just negotiated a ceasefire.  They've been some sporadic fighting but it seems to be holding in the main.  So, what that does is it freezes out certain groups and one of the group's central to that negotiation was the Turks being able to have the Russians talk the Syrians into allowing Turkish troops to move down south into Syria to block the Kurds from uniting east-west. The quid pro quo on that was the Turks not getting all bleeped up and allowing the Assad regime and the Iranian militias to finish cleaning out eastern Aleppo.

JARRETT: With every attack and there were many ISIS terror attacks abroad last year, we're reminded of the fight against ISIS. Does it underscore that President Obama strategy in the war against ISIS hasn't been working?

NASH: Well, it hasn't been and, you know, Turkey is an ally of the United States. As you pointed out earlier, it's a significant NATO member. And the Turks the United States the Saudis, Qatar and Jordan have been allied in this fight, and then, recently, the Turks decided that the way to get a deal cut was to deal with the Russians.

So, they're working for their own best interest, as all nations do, but in this case, the United States wasn't even invited to the party. They weren't part of the talks and the talks that are going to happen in the capital of Kazakhstan in January, the United States is not invited there.

Interestingly enough, the Iranians have insisted that the Saudis not get a seat at that table as well.

JARRETT: Is the solution to all of this military or a political solution?

NASH: It's going to be a political solution driven by a military exhaustion of the forces and getting the backers of the forces to withdraw their support. In this case, what the Russians are trying to do, and the Iranians are going to be keenly interested in this, but what the Russians are trying to do is bring in those Gulf States that have been supporting the militias and the rebels which the Syrian regime calls terrorists.

So, the Iranians though are saying, no, you are not going to bring in the Saudis because their archenemy. So, this is going to be very interesting in the Iranians have a voice in this, a big voice, Greg, because they've supported up to 30,000 militia members, Shia militia, and they're the best fighters on this battlefield bar none.

So, they have everywhere the Assad regime has made progress, it was the Iranian funded and Iranian train militias that had point on that and they led the way.

JARRETT: And I take it that you believed among the biggest losers and all of this you or are the U.S.-backed militias, right?

NASH: I'm afraid to say, yes, that's true because when the tide goes out the folks going to be standing there naked are the -- are the militias and possibly the Kurds, because we have been trying to back the Kurds. It's been spotty support, even though we say, oh, yeah, we're backing the Kurds, yes, sort of.

And I think we were trying to balance that out with Iraqi interests and Turkish interests. And now, it appears that all of those efforts really are going to be pushed to the side and it's going to be Turkey, Iran and Russia calling shots.

JARRETT: The Obama administration simply too timid and reluctant?

NASH: Well, Gregg, options are like grains of sand in an hourglass and the longer you let that hourglass stand, the more options fall away. So, pretty soon, you have few and then you have none. And that hourglass had been upside down a long time.

There were a lot of options we could have done early on, chose not to do it.

JARRETT: All right. Captain Chuck Nash -- Captain, good to see you.  Thanks.

NASH: My pleasure, Gregg.

JARRETT: And now with a look at what's coming up on "MediaBuzz", let's check in with Howard Kurtz -- Howie.

HOWARD KURTZ, HOST, "MEDIABUZZ": Good morning and happy New Year, Gregg.

We'll look at the coverage of Donald Trump, increasingly challenging the media consensus over the CIA findings on Russian hacking of the DNC, calling out CNN and NBC by name and the way in which the press is reacting to that. Plus, a lot of glowing coverage of celebrities are refusing to show up at the Trump inauguration. And finally, the media now are you casting a quite a legacy President Obama. We'll take a look at whether that is -- you know, to coin a phrase -- fair and balanced, coming up the top of the hour on "MediaBuzz".

JARRETT: Howard, thanks.

President-elect Trump still has doubts about Russia's involvement in hacking our presidential election. Where does this story go now?

Our panel is here on "Sunday Morning Futures".



PRESIDENT-ELECT DONALD TRUMP: I just want them to be sure because it's a pretty serious charge and I want them to be sure. And if you look at the weapons of mass destruction, that was a disaster, and they were wrong. So, I want them to be sure. I think it's unfair if they don't know, and I know a lot about hacking. And hacking is a very hard thing to prove. So, it could be somebody else.

And I also know things that other people don't know. So, they cannot be sure of the situation.

REPORTER: What do you know that other people don't know?

TRUMP: You'll find out on Tuesday or Wednesday.


JARETT: President-elect Donald Trump questioning online security and expressing new skepticism about Russia's role in hacking the presidential election.

Mr. Trump is expected to meet with intelligence officials this week to learn more about the allegations against Moscow. This as President Obama ruled out new sanctions and expelled Russian diplomats.

Let us bring our panel: Judith Miller, adjunct fellow at the Manhattan Institute for Policy Research, Pulitzer Prize-winning author and journalist FOX News contributor. Pleased to have Nan Hayworth with us, former congresswoman for New York's 19th district.

Got to start with you since you're new to us here. It's a great pleasure to have you here. Thanks for dropping by.

NAN HAYWORTH, R-FORMER CONGRESWOMAN FOR NEW YORK: Real pleasure to be with you, Gregg. Happy New Year.

JARRETT: What do you make of that comment we just played Donald Trump, what it says about the president-elect view of American cybersecurity?

HAYWORTH: Well, we'd like it to be much more confident obviously, but let's look at this first from the standpoint of what President Obama's just done. Basically, he's expelled Russian diplomats for the sake of an embarrassment. Essentially, the DNC was caught if you will and they've been warned by the FBI many times as fall September 2015, and their data --

JARRETT: They were sloppy.

HAYWORTH: They ignored them. They were sloppy. Same with John Podesta staff, yielded to a phishing email.

That's not the federal government failing to do its job. So, you know, this is -- this is a real issue that present from needs to address. But let's not forget the President Obama is doing something strictly political.

JARRETT: Well, there's any politician ever do anything else?

HAYWORTH: We'd hope them to rise above.

JARRETT: Well, on the one hand, Trump is doubting the security of our computer systems. On the other hand, he continues to doubt that the Russians hacked our computer system. How does that make sense?

JUDITH MILLER, FOX NEWS CONTRIBUTOR: Well, I don't think it does and I think that he will use the opportunity if he is wise, because it's not wise to alienate the people upon whom you are going to depend for your intelligence about the world. And also, they have a way of on remaining president should they choose to do so.

But I think he's going to use that meeting is an excuse to back away from this assertion that we don't know who did this. I think the issue that what we don't know is what the Russians were trying to accomplish. I mean, when you have 17 intelligence agencies say, yes, we think this is Russian, we think we can show you that it is Russian, the motive is more complex.

But, you know, look the intelligence community has been wrong before, so I'm going to keep an open mind. But I bet that Donald Trump is going to have to back track from this claim that we don't know who did this.

JARRETT: Congresswoman, President of Obama promised that he was going to be tough and proportional to the Russian hacking in his retaliation and then --

HAYWORTH: He called Putin to cut it out.

JARRETT: Yes, yes, that was serious. I was like playground taunting.

HAYWORTH: Hey, get out of Crimea while you're at it? Yes, that worked out well.

JARRETT: Even a top Democrat in the U.S. Senate, Democrat, he's Ben Cardin, is the Foreign Relations Committee, says this is inadequate response by President Trump. He called for enhanced sanctions.

What does it say about the end of your presidency when even Democrats are ripping you for being weak?

HAYWORTH: Well, of course, President Obama now knows what it's like to feel like a lame duck. He has conducted his presidency in a way that has made our enemies not fear us, not really respect us, and make our friends doubt us. So, this is the natural issue of that kind of a presidency.

I think President-elect Trump will present a much more potent face to the world and not necessarily -- I don't think it will be a malevolent face, but it will be a face but like Ronald Reagan, President Reagan said peace through strength.

JARRETT: The biggest criticism -- biggest criticism of Obama was that, you know, he dithers, takes forever to make a decision.


JARRETT: Donald Trump seems to be the polar opposite.

Trump said, Judith, "I know a lot about hacking and hacking is very hard to prove, so it could be something else." Well, that may be true, but 17 U.S. intelligence agencies and the FBI all agree it's the Russians. We have the evidence of it.

That's pretty hard to ignore for president-elect, isn't it?

MILLER: Well, that's why I think he will reassess and he will have a different position after that intelligence briefing. That's why the intelligence community has wanted to have his daily briefings, which he has refused. He says he doesn't need them.

I don't know what to expect from Donald Trump. I don't think anybody knows. But I do wonder what will happen and what he will do the first time his good buddy Vladimir Putin decides to cross the line and do something he really doesn't like.

JARRETT: Well, I mean, they appear to be buddy-buddy, and I want to ask you about that. I asked another congressman currently serving earlier this hour, are you a little bit concerned? I mean, we don't know Donald Trump's relationships to Russian businesses or the Russian government because he won't release his tax returns and hell may freeze over before that ever happens. Should Americans be concerned that he might be compromised and behold into the Russians?

HAYWORTH: Gregg, that the president-elect is -- in the cabinet choices that he's made certainly --

JARRETT: Don't go with Rex Tillerson.


HAYWORTH: Rex Tillerson is a very easy -- he's been a universally respected businessman. But my point being --

JARRETT: Yes, but Putin gave him a big award.

HAYWORTH: Well -- but he is -- he is expert on the Russians. But on the defense and the intelligence side, the president-elect has proposed nominees who will not accept compromise of the U.S. position.

JARRETT: General Mattis for one.

HAYWORTH: Exactly, and they know what they're doing. This is -- this is a president who cares very much about America's position in the world, about how we can protect our country and our allies, and make sure that our enemies know where first for serious. He was not going to compromise with Russia.

JARRETT: You guys are going to stick around. I appreciate that. We're going to pause, take a little break here, but we're going to be talking about healthcare, immigration, tax reform -- quite a list for Mr. Trump when he takes office. So, what will get done with the new Congress? Our panel will be back in just a flash.


JARRETT: Congress convening this week with the Republican majority in both chambers. GOP lawmakers now moving quickly to repeal the Affordable Care Act or parts of it, making it a top priority on the agenda.

We're now back with our panel.

Judith, let me start with you. Is it a fool's errand for him to go down the street, to try to convince folks to keep something that turns out to be fairly unpopular, even moderate Democrats may be amenable to getting rid of parts of it?

MILLER: Well, I think that Democrats and even some Republicans will be worried about the implications of what happens to the 22 million Americans who have health care, thanks to Obamacare.

JARRETT: So, you phase it out slowly over two or three years.

MILLER: I think the debate is going to be not whether or not it's going to be repealed, but whether or not it's going to be repealed and replaced or repealed and kind of delayed, you know?


MILLER: That they will ease -- you cannot simply leave people in the lurch and you have to protect the insurance markets. So I think they're going to have to find a way. The president-elect we'll have to coordinate closely with the Hill on a strategy for making sure that people aren't even angrier now about they'll have their healthcare that they already are.

JARRETT: Congresswoman, I pointed out earlier, you could do it with by defeating a filibuster. You can do it through reconciliation. So, I mean, it would appear to be a done deal.

The Republicans have to have a replacement that's viable. What is that?

HAYWORTH: Well, actually, Republicans and I was a physician in the House majority elected in 2010.

JARRETT: The first and only female physician.

HAYWORTH: Female physician elected a member, yes. And so, as a member of that group, I was witness to great plans that thoughtful members of Congress and senators have worked on. Pete Sessions in the House and Bill Cassidy in the Senate have a great plan that they've brought forward with universal tax credits that are not dependent on income, that will eliminate a lot of the problems that Obamacare creates for individuals and employers.  We will be able to have Medicaid flexibility state-by-state, the new CMS administrator whom President-elect Trump has nominated is experienced in that in Indiana. They did very well with their Medicaid patients.

But I agree with Judith, there has to be a transition that will take the American public smoothly from where they are now, which is not a good place. Their insurance is too expensive it doesn't allow the kind of choice and flexibility need to a situation which they have choice and flexibility and the financial ability to pay for it.

JARRETT: All right. It's not just Obamacare. This big agenda tax reform, the immigration.

But I want to ask you about trade policy because he campaigned very, very hard on this. He's going to impose, he says, a 35 percent tax on imports with that trigger a trade war that would only hurt the American consumer?

MILLER: I think that is the problem, Gregg, and you are going to see friction and push back from the Congress and not just from Democrats on those two issues. Immigration and trade policy because we do know that if you slap a tariff like that on imports, you are going to make the American people pay more for good since so much of things that we now make use foreign components.

So I don't really see that happening. I see that parts of his agenda that will move quickly, fairly quickly through the House are, of course, the -- you know, the concern about healthcare, the reform or cutting of taxes, the repatriation of some money working on border security and the wall. I see that happening before I see any progress whatsoever on trade or immigration.

JARRETT: You know, a lot of people voted for Donald Trump because they wanted to see their taxes lowered. He's promise three brackets, lower everybody's taxes and significantly lower corporate tax all the way down to 15 percent.

MILLER: Right.

JARRETT: That probably won't happen. Maybe --

HAYWORTH: That's a bargaining position the president-elect --


JARRETT: So, how quickly can Americans expect more money in their wallets?

HAYWORTH: Well, I think they'll start seeing a more money in their wallets in 2017. I do feel that we will have --

JARRETT: When? I want to spend mine really fast.

HAYWORTH: I know, I know. Well, you know -- look, the market responded.  Now, you know, the United States economy is not represented entirely by the stock market, as we all know. But the market responded very positively to the president's election --


HAYWORTH: -- because they are going to immediately start reeling back regulations that choke businesses.

JARRETT: Frank-Dodd regs.

HAYWORTH: Dodd-Frank, EPA, you know, these are very costly and regulations that do crush enterprise.

So, you will see Americans being hired immediately and more money people's pockets because of productive work that they'll be able to do.

JARRETT: Dodd-Frank, Frank-Dodd.

HAYWORTH: Oh, Dodd-Frank, yes.

JARRETT: Sorry, I always get a backward. Chris Dodd, Barney Frank, Dodd- Frank.

MILLER: I remain skeptical about that.

JARRETT: Still to come, what to watch in 2017. We'll get our panel's predictions.


JARRETT: What's the one big thing to watch in 2017?

Nan Hayworth?

HAYWORTH: I think we're going to watch the Congress and the president to truth the common sense of the American people and allow them to have a lot more control over how they go about their business, their lives and livelihoods.


MILLER: I want to see how he backs down from his cyber hacking attribution problem and I want to see what President Trump will do the first time Vladimir Putin crosses the United States as he surely will.

JARRETT: All right. Nan Hayworth, great to have you here. Thank you so much for being here.

Judith Miller, as always, thank you as well. Happy New Year.

MILLER: Happy New Year, and being healthy.

HAYWORTH: Happy New Year.

JARRETT: That does it for "Sunday Morning Futures." I'm Greg Jarrett.

"MediaBuzz" with Howard Kurtz is up next. I'll see you back here at 12:00 Eastern. Happy New Year.

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