Caruso replaced Juan Manuel Llop, who quit after Saturday's 2-0 defeat to arch-rivals Independiente left Racing pointless after three games in the Clausura championship.
"I have a lot of faith in Racing's players and I believe they are good enough to get out of this situation," he said in a television interview.
"The important thing is that they believe in themselves."
Racing are 16th in the relegation standings which are taken over three seasons in Argentina, a system designed to prevent the big clubs from going down.
Last year, Racing escaped the drop by the skin of their teeth when they won a two-leg promotion-relegation play off against Belgrano. Poor results this season have kept them near the danger zone.
Racing Club emerged from 10 years of bankruptcy in December.
Based in the district of Avellaneda in the sprawling southern suburbs of Buenos Aires, Racing have won the Argentine championship seven times but only once since 1966.
Gustavo Costas, Miguel Angel Mico and Reinaldo Merlo have all had two stints at the club since 1999. Other coaches have included Osvaldo Ardiles and Ubaldo Fillol.
Caruso's previous stint was at Newell's Old Boys, where he helped save the club from relegation but left after publicly falling out with members of the squad.
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