[Former New York Fed President Warns: Wall Street May Be Completely Wrong, AI is Creating an Interest Rate 'Roller Coaster'] Odaily Planet Daily reports that former New York Fed President Bill Dudley believes the market may currently be underestimating this 'up-then-down' interest rate seesaw. He predicts that the short-term upward pressure on interest rates driven by the AI boom could be stronger than investors expect. However, if the Federal Reserve tightens further as a result, the subsequent rate-cutting cycle could also be more drastic than what is currently priced into forward markets. The artificial intelligence investment frenzy is creating an interest rate trajectory for the Federal Reserve that differs from traditional economic cycles: in the short term, capital expenditures on data centers and computing power are competing for funds, driving up growth and asset prices, which may force interest rates to continue rising. But once the investment peak passes or financing chains weaken, the same forces could quickly drag down the economy, prompting the Federal Reserve to pivot toward significant rate cuts.