Based on the theory of the term structure of interest rates, discuss the implications of the following two market observations:

a) Since the Federal Reserve started to tighten its monetary policy by increasing the fed fund target on December 16, 2015, the yield curve associated with US Teasuries has typically been upward sloping.

b) The Feds tightening monetary policy from the end of 2015 to the present has become a concern to financial markets and businesses. In late 2018, the US Treasury yield curve was flattened or even inverted.