New Delhi, May 23 -- JP Morgan & Co. chief executive officer Jamie Dimon sounded a warning for the US economy, as he flagged stagflation risk amid multiple challenges like geopolitics, deficits and price pressures.

Speaking at JPMorgan's Global China Summit in Shanghai, Dimon rejected the idea that the US economy is currently in a "sweet spot."

Stagflation is an economic situation where a country suffers from high inflation combined with high unemployment and stagnant demand in a country's economy, all at the same time. This also creates difficulties for the policymakers.

Against the backdrop of stagflation risk and economic uncertainty amid the tariff war, Dimon also praised the US Federal Reserve's cautious approach of holding intere...