Carragher was part of the Soccer Saturday panel this weekend while he recovers from a dislocated shoulder.
The veteran centre-back told Soccer Saturday: "The whole of Liverpool got a massive lift with the news that Kenny was taking over.
"Unfortunately I haven't been involved on the training pitch with the manager to see if there is different ideas or training but the whole city has had a massive lift.
"For me and Stevie (Gerrard) he's a hero for us and I'm sure the foreign players will work out what it means to the supporters when the teams come out for the weekend."
The 32-year-old added: "You have got to remember last season we finished seventh and we lost (Javier) Mascherano who was a top player for us.
"At the start of the season we thought we could get back into the top four but if you look at the squad compared to the other teams we've got to be realistic and Uefa Cup qualification is what we've got to be looking at.
"We should be a lot higher than where we are and with the squad we've got, we realise we've not been good enough but I don't think that was all down to Roy Hodgson with all of the criticism he got.
"The squad wasn't good enough last season and Kenny's come in and lost the first two games as well and that's three different managers now with the same set of players so it's something we as players have to look at ourselves."