Final answer:
The statement is false. Thomas Jefferson led the Democratic-Republicans, not the Federalists, and his party sought a limited central government.
Step-by-step explanation:
The statement that the Federal Party, led by Thomas Jefferson, believed in a limited central government is false. Thomas Jefferson was actually the leader of the Democratic-Republican Party, which believed in a limited central government and more control in the hands of the states and the people. Conversely, the Federalist Party, led by figures such as Alexander Hamilton and John Adams, supported a strong central government, thinking it would bring prosperity to all Americans and preserve social stability.