Answer
$x = -2$
Work Step by Step
$4^{x} = \frac{1}{16}$
$4^{x} = 16^{-1}$
$4^{x} = 4^{-2}$
$x = -2$
The student forgot that it is $4^{-2}$ and not $4^{2}$. This is where $4^{2} \ne \frac{1}{16}$ and that the student needs to remember that one over a number means that the number's power changes sign before proceeding to the next step.
Check:
$ = 4^{-2}$
$ = (\frac{1}{4})^{2}$
$ = \frac{1}{16}$