Shepherd was born Karen Rae Felker in
Silver City, New Mexico, where her father, Ralph Felker, worked for the U.S. Forest Service. The family soon moved to southern Utah and lived in many small towns throughout Shepherd's childhood as the Department of Agriculture transferred them from place to place until they settled in Provo where she went to high school. Shepherd earned a B.A. in English from the University of Utah in 1962 and went on to receive an M.A. in British Literature from Brigham Young University (BYU) in 1963. In 1963 Shepherd married Vincent Shepherd and they moved to Fort Lewis, Washington, where he was an officer in the Army. In Washington, she taught English at Olympic Junior College. Upon her husband's discharge from the Army, the couple both accepted positions at the
American University in Cairo, Egypt, where they lived for two years. Returning to the U.S and resettling in Utah, the Shepherds had two children, Heather and Dylan. Vincent owned and operated a wholesale oil distributing company and Karen taught Freshman English at Brigham Young University. Shepherd became politically active with the Democratic Party, working for the Senate campaigns of both
Wayne Owens and
Frank Moss. Shepherd was the first woman ever to serve at cabinet level in Salt Lake County Government when she became Director of Social Services. In 1978, she became co-owner of
Network Magazine, which focused on women's workplace issues, and she soon founded a publishing business, Webster Publishing. In 1988 she sold the business and the magazine and became the Director of Development at the University of Utah's School of Business. In 1990 Shepherd was elected to the
Utah State Senate, taking the place of
Frances Farley, who had been at that time the only woman serving in the Utah Senate. She served in the Utah Legislature two years before announcing that she would run to succeed the four-term Democratic incumbent, U.S. Representative Wayne Owens for his seat, after he announced he would not seek re-election but would, instead, run for the U.S. Senate. ==U.S. Congresswoman==