To open the 1.495" bore the best bet is a carbide tipped chucking reamer. About $150 on McMaster & 1/3 of that if you can find the size on eBay. Shank is only 12.5" long so you have to turn an extension. Not a hard job as the reamer shaft is unhardened (usually). Run the spindle about 50 rpm (or the slowest speed closest to 50). Pour all the oil you can on the reamer, flood the bore with oil, feed briskly for about 2" & withdraw with the spindle still turning. Clean reamer, clean bore, relube, go back in and advance another 2", etc.
Honing with a coarse ball hone will open the spindle another .001" or more depending on how long you hone.