Secondary Market Corporate Credit Facility wind down - One easy form of tapering

The Secondary Market Corporate Credit Facility (SMCCF) wind down - one easy form of tapering through selling the Fed's ETF holdings. The SMCCF program ran from March 23, 2020, to the end of the year, and the Fed has announced that it is willing to exit its positions. The total dollar value is around $13.7 billion, so this is a drop in the bucket relative to the $120 billion per month in monthly purchases by the Fed. 

Corporate spreads are tight so there is no underlying reason for the program, and it eliminates the credit exposure on the Fed's balance sheet. The economic impact is low given the high volume of trading in corporate ETFs. If it wants to get this done, the sale can actually be relatively swift. Any signaling will be associated with the speed of action.  

Could this be a signal of something more? Could the Fed be getting ready to reduce asset purchases? Certainly, this action makes sense and sends a broader signal, albeit a weak signal. The Fed should tackle the big issue of tapering because the excess cash and large purchases continue to create distortion in money markets and along the entire Treasury curve. However, the focus of investors is not on whether the Fed should follow a policy but what is the action and potential market impact.