Federalists wanted to have a strong central government that would control the factions. They considered the common people to be ignorant, so the elite was supposed to rule.
On the other hand, Jefferson thought that the common man is capable of making decisions. He also favored state rights, small farmers, democratic values, etc.
He reduced the Federalist's influence by cutting some taxes, including the Whiskey Excise, as well as closing some offices in order to cut useless establishments and expenses. He also replaced Federalists in the Executive, so as to promote Republican Values.