Meredith Whitney on 60 Minutes: Expect 50+ muni bond defaults in 2011

By Tuesday’s close, all three averages were down 3 percent on the week, and the S&P had given up its post-election gains. Stocks fell as tariffs affected Canada, Mexico, and China. Each country announced retaliatory tariffs of their own, further fanning inflationary fears among investors.

The recent rise in long-term yields and the health of the banking sector will be top of mind for investors while Powell and the committee consider how high and how long the fed funds rate should be.