user21441: I run it like the below.
bitcoind -datadir=/Users/varunvb/Downloads -conf=/Users/varunvb/Downloads/bitcoin.conf -daemon

When I run (Using the user name and password as in the config file)
bitcoin-cli -rpcuser=<USER> -rpcpassword=<PWD> getinfo

I get 
error: incorrect rpcuser or rpcpassword (authorization failed)
I see the below in the debug log
ThreadRPCServer incorrect password attempt from 127.0.0.1

My bitcoin.conf file looks like this:
-e
rpcuser=<USER>
rpcpassword=<PWD>


user2306: bitcoin-cli can read rpcuser and rpcpassword out of your config file. Just run it like this:
bitcoin-cli -conf=/Users/varunvb/Downloads/bitcoin.conf -datadir=/Users/varunvb/Downloads getinfo

Also, remove the -e from your bitcoin.conf.

21441: <p>I run it like the below.</p>

<pre><code>bitcoind -datadir=/Users/varunvb/Downloads -conf=/Users/varunvb/Downloads/bitcoin.conf -daemon
</code></pre>

<p>When I run (Using the user name and password as in the config file)</p>

<pre><code>bitcoin-cli -rpcuser=&lt;USER&gt; -rpcpassword=&lt;PWD&gt; getinfo
</code></pre>

<p>I get 
error: <code>incorrect rpcuser or rpcpassword (authorization failed)</code></p>

<p>I see the below in the debug log</p>

<pre><code>ThreadRPCServer incorrect password attempt from 127.0.0.1
</code></pre>

<p>My bitcoin.conf file looks like this:</p>

<pre><code>-e
rpcuser=&lt;USER&gt;
rpcpassword=&lt;PWD&gt;
</code></pre>
 2306: <p>bitcoin-cli can read rpcuser and rpcpassword out of your config file. Just run it like this:</p>

<pre><code>bitcoin-cli -conf=/Users/varunvb/Downloads/bitcoin.conf -datadir=/Users/varunvb/Downloads getinfo
</code></pre>

<p>Also, remove the <code>-e</code> from your bitcoin.conf.</p>
