If prednisone is stopped too quickly, the body does not have time to adjust, and dangerous side effects can occur (see Prednisone Withdrawal). People with hypothyroidism or liver disease may be more sensitive to the effects of prednisone. Prednisone can cause high blood sugar. If you have diabetes, your healthcare provider may recommend that you monitor your blood sugar more closely and suggest an increase in the dose of your diabetes medications. Prednisone can cause mood or psychiatric changes.