Palmer thought he had opened the scoring in the first half at Stamford Bridge before VAR intervened to rule the Chelsea midfielder offside.
The 22-year-old then played a brilliant 60-yard ball to release Pedro Neto down Chelsea’s left flank and the Portuguese winger raced towards goal before providing a low cross for Nicolas Jackson to finish.
Newcastle equalised before the break through Alexander Isak but during his half-time analysis for Sky Sports, Carragher was blown away by Palmer’s game-changing pass.
‘This pass over 60 yards… I mean, that’s one of the best passes I’ve seen, never mind this season, but in the Premier League,’ Carragher said.
‘Taking two or three Newcastle players out and then just on a plate for Neto, and Jackson in the right place.’
Meanwhile, Roy Keane feels Palmer is one of ‘very few’ Premier League players who have such high awareness on the pitch.
‘Absolutely brilliant, I love watching this kid,’ Keane said.
‘Even his awareness when he receives the ball, he knows exactly what’s happening but the to execute the pass.
‘From Palmer’s pass, he knows the space is in behind. He knows exactly what’s happening, [Gianfranco] Zola mentioned it before the game, when he gets it he knows what’s going on around him, very few players have that.
‘Perfect pass, you just run and he’s going to pick you out.’
Palmer restored Chelsea’s lead in the second half to secure a 2-1 victory for Enzo Maresca’s side.
The victory at Stamford Bridge puts Chelsea fourth in the Premier League table with 17 points from nine games.