Transcriptional repressor that down-regulates bmp4 signaling in both mesoderm and ectoderm. Regulates mesoderm patterning by repressing ventral mesoderm genes and promoting the expression of dorsolateral genes. Can also neuralize ectodermal cells directly. Inhibits neural crest migration. The transcription factors foxd1 and foxg1 mutually repress each other to pattern the forebrain (By similarity).