CF does absorb some high frequency vibrations. But it's not suspension. Many old steel bikes had more of a curve at the end of the fork, with small diameter tubing, to have more give when hitting bumps. But modern steel forks aren't made like that and the old style fork would reduce trail, making for a less stable bike.

If your arms and wrists are hurting it's likely a fit problem. That won't be solved with a new fork of any material.