The belief is that there is a price floor on the market. If the market drops, the Fed and Treasury will buy any assets. A price floor has an inflationary effect

The belief is that there is a price floor on the market. If the market drops, the Fed and Treasury will buy any assets. A price floor has an inflationary effect on prices by skewing the expected value. If you consider the price of an asset as the expected value of its probability distribution over possible values, then you cut off the negative tail of the PDF by creating a price floor, the expected value shifts significantly to positive.