As the first President of the United States, George Washington faced many challenges in establishing the new government. He assembled the first Cabinet and helped create the federal court system. Alexander Hamilton proposed an ambitious economic plan that included paying off national debt, establishing the Bank of the United States, and implementing protective tariffs. Political divisions emerged in the 1790s with the formation of the Federalist Party led by Hamilton and the Democratic-Republican Party led by Thomas Jefferson, who disagreed on interpreting the Constitution and economic policies.