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Frank Lampard's side have made an impressive start to the 2020-21 season - they are unbeaten in 13 matches and sit just two points off leaders Tottenham in the Premier League.
Following a transfer ban last term, the Blues splashed out more than £200million this summer as they looked to close the gap on champions Liverpool and title contenders City.
Former Liverpool defender Carragher has insisted that Lampard has one of the strongest squads in England with 'fantastic' options to choose from.
The Blues brought in playmaker Kai Havertz from Bayer Leverkusen for £89m, Germany striker Timo Werner from RB Leipzig for £53m as well as Hakim Ziyech for £38m from Ajax to improve their attack this summer.
Lampard also signed Leicester's Ben Chilwell for £50m, recruited Thiago Silva and Malang Sarr and also spent £22m on new No 1 Edouard Mendy to strengthen his back line.
Things have started to fall into place for Lampard in his second season in charge, having lost just one game in the Premier League this season.