Long winded answer coming
You can of course just buy a .50 Cal. Jag- works great for general use in a .54, and use the actual .54 when you need the tighter fit. I always carry and use a .40 in a .45, .45 in a .50 and so on.
How much to reduce?- simple answer is try as you go, also some jags come with some pretty sharp edges that should be slightly rounded off.
There really is no need to spin it to reduce diameter, and you are not going to get a Dremel to chuck up much of anything with any real accuracy, and the business end of the jag will be so far out from the chuck you are not going to be able to apply much pressure. An ordinary drill would most likely work better.
You can get very good and fast results by screwing the Jag into a section of range rod (or in a pinch the ramrod itself), laying it on a flat surface with the jag end hanging off it, and rolling the rod towards you with the palm of your hand while running a forward stroke with a file to reduce diameter, checking as you go.
I have a full size metal lathe with 5C collets and could turn a jag to any dimension I want in a few seconds really, but honestly simply buying the next undersized jag has worked great for me for a lot of years.
My 2 cents anyway.