What does Matthew 16:16 mean?
Jesus asked the disciples who the people say He is (Matthew 16:13). They understood the crowds of followers to believe Jesus to be a powerful prophet, maybe even one returned from the dead, or John the Baptist. To contrast that view, Jesus asked the disciples who they say He is (Matthew 16:15).Peter answers on behalf of the group. Once more, this indicates he has become the informal leader of the Twelve (Matthew 10:1–4). Peter's answer is simple, straightforward, and emphasizes the center of Jesus' identity: "You are the Christ, the Son of the living God."
Despite often acting like a man "of little faith," according to Jesus (Matthew 14:31; 16:8), Peter has perceived and believed an essential truth about Jesus. The word Christ means "Messiah" or "Anointed One." Peter doesn't stop with recognizing that Jesus is the fulfilment of God's promises for a Savior, he also declares that Jesus is the Son of God, acknowledging that Jesus is, in fact, divine.
Peter and the other disciples still lack complete understanding of why Jesus has come to earth. Peter will shortly prove this and earn a devastating rebuke from Christ (Matthew 16:21–23). Still, this group of close followers is relatively spot-on in their knowledge of who Jesus is. Jesus will make it clear that God the Father has given them this faith.