How to change mysql password
Here are the exact steps I had to run to get it working:

sudo /usr/local/mysql/support-files/mysql.server stop

sudo /usr/local/mysql/bin/mysqld_safe --skip-grant-tables


In new terminal:

mysql -u root  

UPDATE mysql.user SET Password=PASSWORD('my-new-password') WHERE User='root';  
FLUSH PRIVILEGES;  

\q

sudo /usr/local/mysql/support-files/mysql.server start