Employment picked up more than forecast in April and the jobless rate unexpectedly declined to a four-year low of 7.5 percent, showing employers are confident about the economic outlook in the face of federal budget cuts.

Payrolls expanded by 165,000 workers last month following a revised 138,000 increase in March that was larger than first estimated, Labor Department figures showed today in Washington. The median forecast of 90 economists surveyed by Bloomberg projected a 140,000 gain. Revisions added a total of 114,000 jobs to the employment count in February and March.

Stocks rallied, sending the Standard & Poor's 500 Index above 1,600 for the first time, as the report tempered expectations of a second-quarter slowdown. Hiring advanced last month even as employers witnessed the onset of planned government spending reductions, which the Federal Reserve said are hindering growth.

David Fuller's view Good economic news should always be welcomed, especially when we have not seen much of it, at least in terms of GDP over the last 13 years. However, stronger economic growth, as it slowly develops, will bring us closer to a moderation of quantitative easing (QE) and eventually its removal.

Today, no one knows exactly how that will play out, although it is very likely to be a cause of uncertainty and market turbulence.